To study online interest is useful to calculate the interest easily. We have two types of interest Simple interest and compound
interest. Formula for simple interest is, Interest = Principle `xx` Rate `xx` Time
Where I = Total amount of interest paid
P = Amount lent
R = Percentage of principle charged as interest each year.
Example: rate = 2% means then 2/100 =0.02. Use this value in formula.
Formula for compound interest is, A = p`(1+r)^(n)`
Examples of study online interest:
Ex:1
To find simple interest if principle= 3000, rate= 3%, time= 5
Sol:
To study online interest we have to write the formula first
That is Simple interest = Principle `xx` Rate `xx` Time
Apply the given values in the formula,
Interest = 3000 `xx` 3%`xx` 5 R = 3% = 3/100 = 0.03
= 3000`xx` .03`xx` 5
= 450
The answer is 450
Ex:2
Shan invested Rs.6000 for 5 years. He received the simple interest of Rs.1,500.Find the rate of interest.
Sol:
To study online interest we have to write the interest formula first
That is Simple interest = Principle `xx` Rate `xx` Time
Here principal, P= Rs.6000
Number of years, n= 5
Simple interest, I = Rs.1500
Rate of interest, r =?
We know that rate of interest, r =`(100 xx 1500)/(6000 xx 5)`
=5
Therefore Rate of interest = 5%
Ex:3
If the principal amount is $7000, the periodic rate of interest is 3% and the number of compounding periods is 3, what is the value at maturity?
Sol:
To study online interest we have to write the formula first
A = p`(1+r)^n`
Here principal, P= $7000
Rate of interest, r= 3%
= 3/100 = .03
n = 3
A = P (1 + r) n
A = 7000 (1 + .03) 3
A = 7649.089
Ex:4
If the principal amount is $2000, the periodic rate of interest is 2% and the number of compounding periods is 5, what is the value at maturity?
Sol:
To study online interest we have to write the formula first
A = p`(1+r)^n`
Here principal, P= $2000
Rate of interest, r= 3%
= 2/100 = .02
n = 5
A = P (1 + r) n
A= 2000 (1 + .02) 5
A= 2208.1616
These are the some examples to study online interest.
interest. Formula for simple interest is, Interest = Principle `xx` Rate `xx` Time
Where I = Total amount of interest paid
P = Amount lent
R = Percentage of principle charged as interest each year.
Example: rate = 2% means then 2/100 =0.02. Use this value in formula.
Formula for compound interest is, A = p`(1+r)^(n)`
Examples of study online interest:
Ex:1
To find simple interest if principle= 3000, rate= 3%, time= 5
Sol:
To study online interest we have to write the formula first
That is Simple interest = Principle `xx` Rate `xx` Time
Apply the given values in the formula,
Interest = 3000 `xx` 3%`xx` 5 R = 3% = 3/100 = 0.03
= 3000`xx` .03`xx` 5
= 450
The answer is 450
Ex:2
Shan invested Rs.6000 for 5 years. He received the simple interest of Rs.1,500.Find the rate of interest.
Sol:
To study online interest we have to write the interest formula first
That is Simple interest = Principle `xx` Rate `xx` Time
Here principal, P= Rs.6000
Number of years, n= 5
Simple interest, I = Rs.1500
Rate of interest, r =?
We know that rate of interest, r =`(100 xx 1500)/(6000 xx 5)`
=5
Therefore Rate of interest = 5%
Ex:3
If the principal amount is $7000, the periodic rate of interest is 3% and the number of compounding periods is 3, what is the value at maturity?
Sol:
To study online interest we have to write the formula first
A = p`(1+r)^n`
Here principal, P= $7000
Rate of interest, r= 3%
= 3/100 = .03
n = 3
A = P (1 + r) n
A = 7000 (1 + .03) 3
A = 7649.089
Ex:4
If the principal amount is $2000, the periodic rate of interest is 2% and the number of compounding periods is 5, what is the value at maturity?
Sol:
To study online interest we have to write the formula first
A = p`(1+r)^n`
Here principal, P= $2000
Rate of interest, r= 3%
= 2/100 = .02
n = 5
A = P (1 + r) n
A= 2000 (1 + .02) 5
A= 2208.1616
These are the some examples to study online interest.
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