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## Find simple interest

**Problem 2 - Find interest on Rs 2000 for 2.5 years at 10% rate **

Answer

Principal = Rs 2000

Time = 2.5 years

Rate of interest = 10%

Simple interest = (PRT) / 100

Simple interest = (2000 X 2.5 X 10) / 100

Simple interest = Rs 500

Amount Compound Interest Difference between Simple & Compound Interest

Simple Interest is dependent on :

1. Principal

2. Rate of Interest

3. Time Period

So, we get the following Formula :** Simple Interest = (Principal X Rate X Time) / 100 OR SI = (PRT) / 100 **

Answer -

Principal = Rs 1000

Time = 2 years

Rate of interest = 5%

Simple Interest = (PRT) / 100

Simple Interest = (1000 X 2 X 5) / 100

Simple Interest = Rs 100

Answer

Principal = Rs 2000

Time = 2.5 years

Rate of interest = 10%

Simple interest = (PRT) / 100

Simple interest = (2000 X 2.5 X 10) / 100

Simple interest = Rs 500