Important Facts and Formulae:
Principal or Sum:- The money borrowed or lent out for acertain period is called Principal or the Sum.Interest:- Extra money paid for using others money iscalled Interest.Simple Interest:- If the interest on a sum borrowed fora certain period is reckoned uniformly,then it is calledSimple Interest.
Principal = PRate = R% per annumTime = T years. Then,(i)Simple Interest(S.I)= (P*T*R)/100(ii) Principal(P) = (100*S.I)/(R*T)Rate(R) = (100*S.I)/(P*T)Time(T) = (100*S.I)/(P*R)
1.Find S.I on Rs68000 at 16 2/3% per annum for 9months.Sol:- P=68000R=50/3% p.aT=9/12 years=4/3 yearsS.I=(P*R*T)/100=(68000*(50/3)*(3/4)*(1/100))=Rs 8500
If months are given we have to converted intoyears by dividing 12 ie., no.of months/12=years