c) In how many years will the interest of a sum of Rs 3,600 at the rate of $5.5 \%$ per year be Rs $594?
Answer (1)
Recall the formula for simple interest: S I = 100 P × R × T .
Substitute the given values: 594 = 100 3600 × 5.5 × T .
Solve for T: T = 3600 × 5.5 594 × 100 = 3 .
The number of years is 3 .
Explanation
Understanding the Problem We are given the principal amount (P) = Rs 3,600, the rate of interest (R) = 5.5% per year, and the simple interest (SI) = Rs 594. We need to find the number of years (T).
Recalling the Formula The formula for simple interest is: S I = 100 P × R × T .
Substituting the Values Substitute the given values into the formula: 594 = 100 3600 × 5.5 × T .
Solving for T Now, we solve for T: T = 3600 × 5.5 594 × 100 .
T = 19800 59400 .
T = 3 .
Final Answer Therefore, the number of years it will take for the interest to be Rs 594 is 3 years.
Examples
Simple interest calculations are useful in everyday financial planning. For example, if you deposit money in a savings account, you can calculate how long it will take to earn a specific amount of interest. Similarly, when taking out a loan, understanding simple interest helps you determine the total repayment time. This knowledge is crucial for making informed decisions about investments and borrowing.
