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Find simple interest

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


Let solve following problems for further understanding:

Problem 1 - Find interest on Rs 1000 for 2 years at 5% rate
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



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



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