Question

Find the simple interest and amount when principal = Rs. 6000, rate = 6% per annum and time = 4 years

Answer 1

Given:

Principal = Rs. 6000

Rate of simple interest = 6% per annum.

Time = 4 years

To find:

The simple interest and amount.

Solution:

Formula for simple interest:

$I=\dfrac{P\times r\times t}{100}$

Where, P is principal, r is the rate of interest and t is the number of years.

Putting P=6000, r=6 and t=4, we get

$I=\dfrac{6000\times 6\times 4}{100}$

$I=60\times 6\times 4$

$I=1440$

Now,

$Amount=Principal+Interest$

$Amount=6000+1440$

$Amount=7440$

Therefore, the simple interest is Rs. 7440 and the amount is Rs 7440.