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Created: 18 Aug, 2010; Last Modified: 29 Apr, 2018 Commercial Mathematics - 03Simple InterestInterest is the money paid for the use of borrowed money (money taken as loan). The interest is paid by the money borrower to the money lender (such as a bank). Interest is always stated as a percentage of the loan, and is then known as the interest rate (R) while the loan value is called the principal (P). The sum of the principal and the interest is known as the amount (A). This is the total sum to be paid to the lender. When interest is calculated only on the original principal, it is called simple interest (S.I.). The interest rate R is generally expressed as a certain percentage of the principal P for one year, expressed as R Find the simple interest on Interest on
Hence, the accumulated interest for The above example leads to the Simple Interest formula which connects the interest to the principal, the interest percentage and the interest term period.
.......(1)
where: S.I. = interest; P = principal;
R = interest rate % ; T = time periodAnd, of course,
.......(2)
where A = amount In Eq. , the time period T may be in terms of months or years, although the latter is more common. At what rate percent will Given A Let R be the rate percent. Therefore, using the Simple Interest formula: Thus, the interest rate percent is Find the interest on The number of days between March 5 and July 29 Therefore, the time period
Thus, the interest is Feedback
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Otherwise, send an email to feedback@mentorials.com with subject line: "Feedback: Simple Interest". List of ReferencesBansal, RK, Concise Mathematics I.C.S.E., Part I – Class IX, New Delhi: Selina Publishers, 2005. Chakravarti, JC, Arithmetic, 55th edn, Kolkata, India: MC Chakravarti, 1992. BibliographyChakravarti, JC, Arithmetic, 55th edn, Kolkata, India: MC Chakravarti, 1992. Thompson, JE, Arithmetic for the Practical Man, 3rd edn, NJ: Van Nostrand's Reinhold Company Inc., 1962.
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