Simple Interest for Class 1

Table of Content

  • Formula for Simple Interest
  • Simple Interest Formula for Months
  • Simple interest is a method of calculating interest on a loan or investment. It is calculated as a percentage of the principal amount, which is the amount of money borrowed or invested, and is based only on the original amount borrowed or invested, rather than including any accumulated interest.

    Formula for Simple Interest

    Simple interest can be calculated using the following formula:

    simple-interest-formula

    Where:
    > Principal (P) is the initial amount of money invested or borrowed
    > Interest Rate (R) is the percentage rate at which interest is charged or earned
    > Time (T) is the duration of the investment or loan (usually measured in years)

    Amount = Principal (P) + Simple interest (S.I.)

    simple-interest-formula1

    For example, if you borrow $1,000 at a simple interest rate of 5% per year for 2 years, the interest you would owe would be:

    Simple Interest = (1,000 x 5 x 2) / 100 = $100

    So, the total amount you would owe at the end of 2 years would be:

    Total Amount = Principal + Simple Interest = $1,000 + $100 = $1,100.

    Simple Interest Formula For Months

    simple-interest-formula2

    Quick Video Recap

    In this section, you will find interesting and well-explained topic-wise video summary of the topic, perfect for quick revision before your Olympiad exams.

    ***COMING SOON***

    ×

    >> Join CREST Olympiads WhatsApp Channel for latest updates.

    Curio - AI Doubt Solver

    This is Curio, your AI Doubt Solver. Here to help you with any educational doubts you encounter while preparing for your Olympiad exams. Feel free to ask questions and learn!

    Share Your Feedback

    CREST Olympiads has launched this initiative to provide free reading and practice material. In order to make this content more useful, we solicit your feedback.

    Do share improvements at info@crestolympiads.com. Please mention the URL of the page and topic name with improvements needed. You may include screenshots, URLs of other sites, etc. which can help our Subject Experts to understand your suggestions easily.

    Mental Maths Related Topics

    Other Subjects for Class 1

    ×
    70%