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Worked Examples · Example 1

Q.Find the simple interest on ₹8,000 for 4 years at 6% per annum, and the amount payable at the end of the period.

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✓ Free question

Given: P=8000P = 8000, R=6%R = 6\% p.a., T=4T = 4 years.

Method 1 — direct formula.

SI=P×R×T100=8000×6×4100=192000100=1920.SI = \dfrac{P \times R \times T}{100} = \dfrac{8000 \times 6 \times 4}{100} = \dfrac{192000}{100} = 1920.

Amount A=P+SI=8000+1920=9920A = P + SI = 8000 + 1920 = 9920.

Method 2 — independent check (year-by-year). Under simple interest the interest is the same every year: 6% of ₹8,000 = ₹480 per year. Over 4 years the total interest is 480×4=1920480 \times 4 = 1920, and the amount is 8000+1920=99208000 + 1920 = 9920 — matching Method 1.

✓Final answer

Simple interest = ₹1,920 and the amount payable = ₹9,920.

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