**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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