ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer. Step-by-step explanation: Before using the rate given as a percentage in simple interest formula, you must first convert it to decimal. This helps in simplifying the work and help the calculation.

Detailed explanation-2: -Simple interest is calculated with the following formula: S.I. = P × R × T, 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.

Detailed explanation-3: -To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is “Simple Interest = Principal x Interest Rate x Time.” This equation is the simplest way of calculating interest.

Detailed explanation-4: -However, it’s easier to use a handy formula: rate equals distance divided by time: r = d/t.

Detailed explanation-5: -The formula we use to calculate simple interest is I=Prt I = P r t . To use the simple interest formula we substitute in the values for variables that are given, and then solve for the unknown variable. It may be helpful to organize the information by listing all four variables and filling in the given information.