Rs 4800 at 5% p.a. for 2 years.
Answer (2)
The simple interest earned on Rs 4800 at a rate of 5% per annum over 2 years is Rs 480. This is calculated using the simple interest formula by substituting the principal amount, interest rate, and time period. The calculation shows that Rs 480 is the interest gained during this time frame.
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Identify the principal amount (P), rate of interest (R), and time period (T).
Apply the simple interest formula: S I = 100 P × R × T .
Substitute the given values: S I = 100 4800 × 5 × 2 .
Calculate the simple interest: S I = 480 . The simple interest is 480 .
Explanation
Understanding the Problem We are given a principal amount of Rs 4800, an interest rate of 5% per annum, and a time period of 2 years. Our goal is to calculate the simple interest earned over this period.
Recalling the Formula The formula for calculating simple interest is: S I = 100 P × R × T where:
SI is the simple interest,
P is the principal amount,
R is the rate of interest per annum,
T is the time period in years.
Calculating the Simple Interest Now, we substitute the given values into the formula: S I = 100 4800 × 5 × 2 S I = 100 48000 S I = 480 Therefore, the simple interest is Rs 480.
Final Answer The simple interest earned on Rs 4800 at 5% per annum for 2 years is Rs 480.
Examples
Simple interest calculations are useful in everyday life, such as when you deposit money in a savings account or take out a loan. For example, if you deposit money in a savings account, the bank will pay you interest on your deposit. The amount of interest you earn will depend on the principal amount, the interest rate, and the time period. Understanding simple interest helps you estimate how much interest you can earn on your savings or how much you will owe on a loan. This knowledge is crucial for making informed financial decisions.
