Given:
Rate(R)% = 7.5%
Time(T) = 4 years
Amount = Rs. 819
Formula used:
Amount = Principal(P) + Simple interest(S.I)
Amount = P(1 + RT/100)
Calculation:
According to the question,
simple interest(S.I) = (P× R× T)/100
Amount = P + S.I
⇒ P + PRT/100
⇒ Amount = P(1 + RT/100)
⇒ 819 = P(1 + (7.5 × 4)/100)
⇒ 819 = 13P/10
⇒ P = 8190/13
⇒ P = 630
∴ The amount invested was Rs. 630.
![[Solved] On investing an amount of 7.5% simple interest per annum, it (1)](data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw== "[Solved] On investing an amount of 7.5% simple interest per annum, it (1)")
Net effective rate in four year = 7.5× 4
⇒ 30%
⇒ 30% in fraction form = 3/10
⇒ amount = 10 + 3 = 13 unit
⇒ 13 unit = 819
⇒ 1unit = 63
then,
⇒ Principal = 10 unit
⇒ 10× 63
⇒ 630
∴The amount invested was Rs. 630.
FAQs
Detailed Solution
- Given: Rate(R)% = 7.5% Time(T) = 4 years. Amount = Rs. ...
- Formula used: Amount = Principal(P) + Simple interest(S.I) Amount = P(1 + RT/100)
- Calculation: According to the question, simple interest(S.I) = (P × R × T)/100. ...
- ∴ The amount invested was Rs. 630. Net effective rate in four year = 7.5 × 4.
Use this simple interest calculator to find A, the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. Where r is in decimal form; r=R/100; r and t are in the same units of time.
What is the future equivalent of $500 invested at 8% simple interest per year for 2 1 2 years? ›
Therefore, the future equivalent of $500 invested at 8% simple interest per year for 2 1/2 years is $600.
What is the sum of money invested at 8% per annum for simple interest amounts to rupees 12122 in 2 years? ›
Here, simple interest rate per annum is 8% , the time is 2 years and the final amount is Rs. 12122. Thus, the initial principal balance in hand is Rs. 10,450.
What does 7.5% per annum mean? ›
The per annum interest rate refers to the interest rate over a period of one year with the assumption that the interest is compounded every year.
What does 7% interest per annum mean? ›
An interest rate of 7 percent means that for every 100 units of currency (e.g., dollars, euros, etc.) you have invested or borrowed, you will earn or owe 7 units of currency as interest. It is typically expressed as an annual percentage rate (APR), which means the interest is calculated over a one-year period.
How to calculate simple interest per annum? ›
Use this formula to calculate simple interest: I = P * R * tThe formula denotes 'I' as the simple interest, 'P' as the principal amount, 'R' as the rate and 't' as time. Time is the length of a loan or an investment.
How to calculate interest rate per annum? ›
To calculate interest rates, use the formula: Interest = Principal × Rate × Tenure. This equation helps determine the interest rate on investments or loans.
What is the formula for simple interest? ›
Simple Interest Formula
Simple interest is calculated with the following formula: S.I. = (P × R × T)/100, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years. The rate of interest is in percentage R% (and is to be written as R/100, thus 100 in the formula).
What is the future value of $1000 after 5 years at 8% per year? ›
Answer and Explanation: The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.
Therefore, it will take 5 years for an amount of 50,000 pesos to gain 10,000 pesos in simple interest at a rate of 4% per annum.
How much is $10,000 at 10% interest for 10 years? ›
If you invest $10,000 today at 10% interest, how much will you have in 10 years? Summary: The future value of the investment of $10000 after 10 years at 10% will be $ 25940.
How much time will 1200 invested at 8% simple interest per annum double itself? ›
∴ The correct answer is 12.5
2024.
How long will it take a sum of money invested at 5% per annum SI to interest its value by 40%? ›
t=20025 = 8 years.
How long will it take a sum of money invested at 8% simple interest to double the original sum? ›
⇒T=1008=12.5 years.
How do you calculate interest per annum? ›
The formula for calculating simple interest is: Interest = P * R * T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).
How do you calculate 8% annual interest? ›
The math for compound interest is simple: Principal x interest = new balance. For example, a $10,000 investment that returns 8% every year, is worth $10,800 ($10,000 principal x . 08 interest = $10,800) after the first year.
What is 7% interest on $300000? ›
With a $300,000 home loan at a 7% APR, for example, the total amount you pay in interest could range from $185,367 to $418,527, depending on the length of the loan (15 vs. 30 years). Spreading out your mortgage payments over a longer term can lower your monthly payment.
How much is 7 percent interest on $100000? ›
Monthly payments on a $100,000 mortgage by interest rate
At a 7.00% fixed interest rate, a 30-year $100,000 mortgage may cost you around $665 per month, while a 15-year mortgage has a monthly payment of around $899.
![[Solved] On investing an amount of 7.5% simple interest per annum, it (1)](https://i0.wp.com/storage.googleapis.com/tb-img/production/22/04/5ff7fd2d6ed94a5387781279_16488087916321.png "[Solved] On investing an amount of 7.5% simple interest per annum, it (1)")
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