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Wednesday, July 15, 2015

Simple and Shortcut Trick & Concept to Solve Simple Interest

                                         
                                       Simple Interest


Simple Interest : In our banking Department  or day to day life we give or receive money from one person to another with a rate of Interest. There is two type of Interest
        1. Simple Interest .
        2. Compound Interest.

In the Competitive Examination simple Interest and Compound Interest are very important. So here we start Simple Interest.  
                                           Simple Interest = (P*R*T) / 100

Where,  P = Principal Amount : the money barrow or lent out for a certain period is called the        Principal or the sum.
 R = Rate at which Amount are taken.
 T = Time is Duration of time period.



So Here we take 1st Example.

Example 1 : Principal = 10000, Rate = 20%, Time = 3 years. Find the Simple interest ?
Solution : we can do it by simply using above formula.

    S.I = (P*R*T) / 100  = (10000*20*3) / 100 = 6000

We have multiplied the simple terms Principle * Rate * time and it Divided by 100.
 So we will get 6000.

We can solve it by simple shortcut method.
Suppose if I am investing 100 Rs at 10%, so I will get 10, 10, 10 every year. So for 3 year it is 30 %

So in the above example
20% every year for 3 year, so here it will be 20, 20, 20 for every year, it will be 60% 
So the 60% of 10000 is 6000. So it is simple to calculate. 


Example 2 : If Principal amount = 10000, Time = 2 Years and Simple Interest = 6000, find Rate of Interest.
Solution :  we can also solve it by formula.
    S.I =   just put the value in the formula.
    6000 =   . we can simply solve this.
    Get 2 left side in denominator   = 100R then 3000=100R
    So then R =  Rate of Interest
We can solve it by simple shortcut method
Here We have invested 10000 for 2 year and total Interest is 6000.
6000 is 60% of 10000. So the 60% is getting in 2 years. So per year is 30%, so the Rate is 30%.

Example 3: if the Amount = 10000, and the rate of interest is 10% of 1st year, 2nd year is 20% and 3rd year is 30%, so find the total amount ?
Solution : In this question, there is 3 Different Values. Here is 10%, 20%, 30%
So here we can add it 10+20+30 = 60%, so the total interest is 60%.
So the 60% of 10000 = 6000.
So basically every question of Simple Interest we have done it by simple common sense method.



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