With simple interest the interest is not re-invested and does not gain interest.
Rs 180 over 4 years = Rs 180 ÷ 4 = Rs 90 per year.
Interest rate is 6% per year, thus Rs 90 = 6% of the capital
→ 6% x capital = Rs 90
→ capital = Rs 90 ÷ 6%
= Rs 90 ÷ 6/100
= Rs 90 x 100/6
= Rs 1500
It will grow to nine eighths of the original sum.
It's 11/12 percent of whatever principle you still owe.
The same as 2% per year. Per annum means per year.
6.5%Formula for finding Simple InterestSI [Interest] = (P×R×T)/100P [sum] = (SI×100)/(R×T)R [Rate/year] = (SI×100)/(P×T)T [Time] = (SI×100)/(P×R)whereS.I. = Simple Interest,P = Principal or Sum of amount,R = % Rate per annum,T = Time Span
Your capital in a poor savings account.
670.50
If it is simple interest, then it is 2700. ■
$494.34 Interest= principal amount * time* simple interest %
Rs 80.
5 years
120
Rs 84 in all.
30 years
3
Assuming simple interest, you multiply the capital times the interest rate times the number of years.
It depends on whether the 4% interest is per annum or for 8 years altogether. Also, you have to see if it is a simple interest or compounded interest.
It will grow to nine eighths of the original sum.