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Simple & Compound Interest

· Examples

✏️ Worked Examples — Step by Step

E1
Easy

Find the simple interest on ₹6000 at 8% per annum for 3 years.

💡 SI = (P × R × T) / 100.

👁 Show Solution
SI = (6000 × 8 × 3) / 100
= 144000 / 100 = ₹1440

✅ Answer: ₹1440
₹1440
E2
Medium

Find the compound interest on ₹5000 at 10% per annum for 2 years, compounded annually.

💡 Amount = P × (1 + R/100)^T. CI = Amount − P.

👁 Show Solution
Amount = 5000 × (1.1)² = 5000 × 1.21 = ₹6050
CI = 6050 − 5000 = ₹1050

✅ Answer: ₹1050
₹1050
E3
Challenging

A sum of money doubles itself in 8 years at simple interest. What is the rate per annum?

💡 When SI = P, R × T = 100.

👁 Show Solution
SI = P, so (P × R × T) / 100 = P
R × T = 100 → R = 100 / 8 = 12.5%

✅ Answer: 12.5% per annum
12.5% per annum