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Simple interest is calculated mainly only on the principal amount or on that portion of the principal amount that remains unpaid.
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Choose the formula for calculating simple interest,rate,time and principal.As you see below.
Simple interest (S I) = $\frac{P * R * T}{100}$.
Principal (P) = $\frac{100 * I}{R * T}$
Rate (R) = $\frac{100 * I}{P * T}$
Time (T) = $\frac{100 * I}{P * R}$
Step 2 :
Where : P = Principal Amount.
R = Interest Rate.
T = Time Periods (in year).
I = Simple Intrest .
Step 3 :
Put the values in the formula and simplify it further.
Find the Simple interest . If Principal amount Rs. 3000 at the rate of 5% for 3 years.
Step 1 :Given:
P = 3000 rs.
R = 5 %
T = 3 years.
Step 2 :Put the values in the formula,
SI = $\frac{P * R * T}{100}$.
SI = $\frac{3000 * 5 * 3}{100}$.
Step 3 :Multiply the values,
SI = $\frac{3000 * 15}{100}$.
SI = $\frac{45000}{100}$.
Answer :Simple Interest = 450.
Find the principal value, when Time = 2 years, Interest = $ 800 and Rate = 5 % per Annam?
Step 1 :Given:
Time = 2 years.
Interest = $ 800.
Rate = 5 % .
Principal = ?
Step 2 :Put the values in the formula,
Principal (P)= $\frac{100 * I}{R * T}$
Principal (P)= $\frac{100 * 800}{5 * 2}$.
Step 3 :Multiply the values,
Principal (P)= $\frac{8000}{10}$.
Answer :Principal (P) = $ 8000
