Solve problems on Simple Interest

Hi Friends, How are you? We have solved few problems on Simple interest earlier. Are you aware of the word interest? Well lets learn to solve a few problems related to interest.


Firstly lets find the simple interest.

Problem No1:- Find the simple interest on 550 dollars for 3years at 5% per annum.

Sol: Given: P = 550 dollars

R = 5%

T = 3 years.

Therefore, simple interest, I = PTR/100

= 550*3*5/100

= 82.50 dollars.

Hence the interest received is 82.50 dollars.

Now that we learn t how to calculate simple interest now lets calculate rate of interest in the below problem.

Problem No2:- At what rate of interest per annum will 1500 dollars amount to 1800 dollars in 4 years.

Sol: Given: I = 1800 – 1500

= 300 dollars.

T = 4 years, P = 1500 dollars.

R = ?

I = PTR/100

R= I*100/P*T

= 300*100/1500*4

= 5%

Therefore, the rate of interest is 5%.

Just reading will not help you until you don't practice it, It is fun my friends you just have to understand the concept well. Let me know your comments on this.