24.3.1. Simple Interest (SI)

Try these first

1. 1.

   Calculate the Simple Interest for a principal of ₹8,000 at an interest rate of 3% for 1 year.

   Hint

   Use the formula SI = (P × r × t) / 100.

2. 2.

   What is the SI for ₹12,000 at an interest rate of 5% over 3 years?

   Hint

   Remember to multiply for the number of years.

3. 3.

   What does the 'P' in the Simple Interest formula represent?

   • Principal Amount
   • Payment Amount
   • Periodic Amount

   Hint

   Remember, it's the initial sum of money.

4. 4.

   True or False: Simple Interest is calculated on the accumulated amount including previous interest.

   • True
   • False

   Hint

   Think about how interest accrues.

5. 5.

   Consider taking a loan of ₹40,000 for 6 years at an interest rate of 7%. How much total interest will you owe at the end of this term?

   Hint

   Break it down into the parts of the formula and substitute the values.

6. 6.

   You have ₹8,000 in a savings account that earns 9% Simple Interest. Calculate the total amount in the account after 4 years.

   Hint

   First calculate the interest with the components and then add to the principal.