Calculating Simple Interest for Different Principal Amounts

In this article, we will delve into the simple interest calculations for various principal amounts, using a specific example: Rs. 1500 at a rate of 6% per annum for 146 days. Understanding how to calculate simple interest is crucial for anyone dealing with financial matters, such as loans, investments, and savings accounts.

Understanding Simple Interest

Simple interest is a basic financial concept used to calculate the interest amount on a principal amount over a specified period. It is calculated using the formula:

Simple Interest (SI) (P × R × T) / 100

Where:

P Principal amount (the initial amount of money) R Rate of interest per annum (the annual interest rate) T Time in years

Simple Interest on Rs. 1500 at 6% Per Annum for 146 Days

To find the simple interest on Rs. 1500 for 146 days at a rate of 6% per annum, we need to use the formula and convert the time into years.

Step-by-Step Calculation

Determine the principal amount, P: Rs. 1500 Determine the rate of interest, R: 6% Convert time from days to years: T 146 / 365 ≈ 0.4000 years

Now, substitute the values into the formula:

SI (1500 × 6 × 0.4000) / 100

Perform the multiplication first:

1500 × 6 9000 9000 × 0.4000 3600

Finally, divide by 100 to get the simple interest:

SI 3600 / 100 Rs. 36

Therefore, the simple interest on Rs. 1500 at 6% per annum for 146 days is Rs. 36.

Simple Interest for Different Principal Amounts

Let's now calculate the simple interest for a different principal amount and time period.

Example 1: Simple Interest on Rs. 1200

S.I. (P × N × R) / 100

P 1200 N 6 (rate of interest per annum) T 146 / 365 ≈ 0.4000 years

Substitute the values into the formula:

S.I. (1200 × 146 / 365) × 6 / 100

Simplify the calculation:

S.I. (1200 × 146) / 36500 × 6

S.I. 3600 / 36500 × 6

S.I. ≈ 36

Therefore, the simple interest on Rs. 1200 at 6% for 146 days is approximately Rs. 28.80.

Example 2: Simple Interest for Rs. 1200

SI PRT / 100

P 1200 R 6% T 146 / 365 0.4 years

Substitute the values into the formula:

SI (1200 × 6 × 146) / 36500

Perform the multiplication and division:

SI (1200 × 6 × 146) / 36500

SI ≈ 28.80

Therefore, the simple interest on Rs. 1200 at 6% for 146 days is Rs. 28.80.

Lastly, let's solve it step-by-step:

Determine the principal amount, P: 1200 Determine the rate of interest, R: 6% Convert time from days to years: T 146 / 365 0.4

Now, substitute the values into the formula:

SI (1200 × 6 × 0.4) / 100

Perform the multiplication first:

1200 × 6 7200 7200 × 0.4 2880

Finally, divide by 100 to get the simple interest:

SI 2880 / 100 Rs. 28.80

Therefore, the simple interest on Rs. 1200 at 6% per annum for 146 days is Rs. 28.80.

Conclusion

Understanding and calculating simple interest is essential for financial management. Whether you are dealing with loans, investments, or savings accounts, knowing how to compute simple interest can help you make informed decisions.

Additional Resources

For more information on simple interest and other financial concepts, visit our financial resources page.