Understanding the Concepts of Simple Interest
Simple Interest (S.I.) is a simple and effective method of calculating the returns on a particular principal amount.
Simple interest can be mastered with a basic understanding of percentage calculations.
Example Problem
Find Simple interest on Rs. 200 at the rate of 5% per annum for two years.
Step 1 - Find 5% of Rs.200 - which is Rs.10
Step 2: Multiply it with the number of years; here, it's 20.
So the simple interest will be 10 x 2 = Rs.20
A simple formula can represent this:
And one more concept to remember, the sum of principal and interest is called the amount.
Amount = Principal + Simple Interest
FAQsFAQs
Why is understanding the concepts of Simple Interest important?
Understanding the concepts of Simple Interest assists in:
Understanding how Simple Interest formulas are derived
Addressing the Simple Interest problems promptly and accurately.
Resolving each of the various forms of questions on the Simple Interest topic
Developing your unique shortcuts
Is it possible to solve Simple Interest problems without knowing the concept?
Yes, it's possible to solve Simple Interest questions without understanding what they entail. However, experts advise that comprehending the fundamentals is essential to address the Simple Interest problems effectively.
What is the right way to learn Simple Interest concepts?
The foundation of mathematics is concepts, and understanding them is critical to boosting your performance in the Quantitative Aptitude section. Visualising the concepts using real-life examples is the best approach to learn the Simple Interest concepts.
