SIMPLE INTEREST B8

Kinjal deposited the amount of 10,000/= in a bank which gives an interest rate of 5% for 3 years. Calculate the simple interest.

Solution

I = ?,  P = 10,000/=, T = 3 years, R = 5%

I  = PRT

      100

I  = 10,000 x 5 x 3

            100

I  = 10000 x 5 x 3

            100

I  = 100 x 5 x 3

           

I  = 1,500/=

Hence the simple interest is Tsh 1,500/=