Factors Affecting Interest
We will discuss here what are the different factors affecting interest.
Interest depends on three factors, namely they are
1. Principal
2. Rate of Interest
3. Period of Time
‘P’ is the principal. ‘T’ is the time in years, ‘R’ is the rate of interest per annum and S.I. is simple interest, then we can calculate simple interest by using the following formulae.
S.I. = P × R × T/100
Amount: The sum which is borrowed, repays to the lender along with the interest after using the principal for a certain period is called the Amount.
Therefore, Amount = Principal + Interest
Interest = Amount - Principal
Principal = Amount - Interest
Note: (i) If the time is in months, change it into years by
dividing the number of months by 12.
(ii) The present rate has to be changed into a fraction. For example, if the percent rate is 5%, write 5/100 for rate. Do not write 5 for the rate.
Solved examples on calculating interest:
1. Find the interest on $ 2500 at 8 ½ per annum for 4 ½ years?
Principal = $ 2500
Rate = 8 ½ % per annum
= 17/2 % per annum
Time = 4 ½ years = 9/2 years
Interest = P × R × T/100
= $ (2500 × 9/2 × 17/2)/100
= $ (2500 × 9 × 17)/(2 × 2 × 100)
= $ 956.25
2. Find the interest to be paid at the end of one year on $ 500 at 5% per annum.
I = P × R × T/100
= (500 × 5 × 1)/100
= $ 25
3. Find the interest to be paid at the end of one year on $ 900 at 6% per annum
I = P × R × T/100
= (900 × 6 × 1)/100
= $ 54
4. Find the interest to be paid at the end of one year on $ 1200 at 8 ½ % per annum
I = P × R × T/100
= (2000 × 17/2 × 1)/100
= (2000 × 17 × 1)/(2 × 100)
= $ 170
Word Problems on Simple Interest.
In Simple Interest when the Time is given in Months and Days.
To find Principal when Time Interest and Rate are given.
To find Rate when Principal Interest and Time are given .
To find Time when Principal Interest and Rate are given.
Worksheet on Factors affecting Interest
5th Grade Math Problems
From Factors Affecting Interest to HOME PAGE
Didn't find what you were looking for? Or want to know more information about Math Only Math. Use this Google Search to find what you need.
Recent Articles
-
2nd grade math Worksheets | Free Math Worksheets | By Grade and Topic
Dec 04, 24 01:30 AM
2nd grade math worksheets is carefully planned and thoughtfully presented on mathematics for the students. -
Time Duration |How to Calculate the Time Duration (in Hours & Minutes)
Dec 04, 24 01:07 AM
Time duration tells us how long it takes for an activity to complete. We will learn how to calculate the time duration in minutes and in hours. Time Duration (in minutes) Ron and Clara play badminton… -
Worksheet on Subtraction of Money | Real-life Word Problems | Answers
Dec 04, 24 12:45 AM
Practice the questions given in the worksheet on subtraction of money by using without conversion and by conversion method (without regrouping and with regrouping). Note: Arrange the amount of rupees… -
Worksheet on Addition of Money | Questions on Adding Amount of Money
Dec 04, 24 12:06 AM
Practice the questions given in the worksheet on addition of money by using without conversion and by conversion method (without regrouping and with regrouping). Note: Arrange the amount of money in t… -
Worksheet on Money | Conversion of Money from Rupees to Paisa
Dec 03, 24 11:37 PM
Practice the questions given in the worksheet on money. This sheet provides different types of questions where students need to express the amount of money in short form and long form
New! Comments
Have your say about what you just read! Leave me a comment in the box below. Ask a Question or Answer a Question.