SIMPLE INTEREST

HUMERA SHAIKH

Tilak College of Education,

Pune

INTRODUCTION

Story:

Krish wants to purchase a house of Rs.

30,00,000. But don’t have such a big amount

with him. He doesn’t have enough savings to

buy the house. What will he do? Can you

suggest?

Ask a friend to lend some money…..

Go to the bank for a loan…..

Q- What is a loan?

Terms used :

Loan

Lender

Borrower

SIMPLE INTEREST

Definition:

When at the time of returning the Loan

to the Bank, we have to pay back an

amount somewhat bigger than the

Borrowed Loan amount. This additional

amount is called as Simple Interest.

Factors of Simple

Interest :

Principle Amount

Rate of Interest

Time (Period) in Years

FORMULA

Simple Interest:

SI= P* R* N

100 Where,

P= Principal Amount (Rupees)

R= Rate of Interest (per cent per annum) (p.c.p.a)

N= No. of period (Years)

SI= Simple Interest (Rupees)

EX 1: FIND SIMPLE INTERESTPrincipal = Rs. 5000/-

Rate of interest= 8p.c.p.a

No. of years= 3 years

Simple Interest= _______

SI= P*R*N = 5000*8*3

100 100

SI = 1200/- Ans: Simple

Interest= Rs 1200/-

EX 2:FIND SIMPLE INTEREST

Jenny lends Rs 300 to her friend who

needs to pay the School Picnic fees.

Her friend promised to pay her the

amount with 12% interest in 3months.

How much will be the interest?

RECAP

What do you mean by Loan ?

What are the factors of

Simple Interest ?

What is the formula to

calculate Simple Interest?

APPLICATION: FIND OUT THE SIMPLE INTEREST

Example Principal (Rs.)

Rate of Interest (p.c.p.a)

No. of years

Simple Interest (Rs.)

1 9000 10 3

2 1500 4 10 months

3 20000 15 2

ASSIGNMENT

‘ Collect some Newspaper

cutouts where you can find

information on Loan or

Interest.’

THANK YOU FOR

YOUR KIND ATTENTION

AND CO-OPERATION!!!!!