Simple Interest Formula with Example for SSC and Banking Exams

The formula helps to solve questions quickly but you just need to learn how to use any formula to solve the problem. Today I am giving important simple interest formula with examples to understand their use of them. Just memorize these simple interest formulas to solve problems quickly and learn simple interest formulas with examples.

Simple interest is an important topic of quantitative aptitude. Every year 2-3% of questions are asked of simple interest in SSC, bank and another competitive exam. After learning the use of simple interest formula you can practice simple interest questions with answers.

Simple Interest Formula with Example for Competitive Exams:

Simple Interest definition: If the interest calculated on sum borrowed for a particular period/time is reckoned uniformly that is called a simple interest.

Principal definition: The money lent/borrowed for a certain period/time is called the principle/sum.

Interest definition: Extra money paid for using other’s money is called interest.

Let Principle = P

Rate = R% per annum (p.a)

Time = T year

Amount = A

 (1) Simple interest Formula:

S.I = 

(2) Formula for Principal:

P = 

(3) Formula for Rate of Interest:

R = 

(4) Formula for Time:

T = 

(5) Formula for Net Amount 

A = P+I

Simple Interest Example:

Q.1 Find the simple interest on Rs. 68,000 at  per annum for 9 months. 

Solution:

P= Rs. 68000,   R= p.a and   T=  years =  years.

S.I = = Rs. 

=Rs. 8500

Q.2 Find the simple interest on Rs. 3000 at  per annum for the period from 4^th feb, 2015 to 18 April 2015.

Solution:

Time = (24+31+18) days = 73 days =  year =  year.

P = Rs. 3000 and R =  p.a =  p.a

S.I = Rs. 

= Rs. 3750

Q.3 IF a sum of money becomes ‘n’ times in ‘T’ yr at simple interest, then formula for calculating interest will be given as R = 

Ex. A sum of money becomes four time in 20 yr at SI. Find the rate of interest.

Solution:

Here, T = 20 yers, n= 4p

R=  =  = 

= 15

I hope this given simple interest formula with example helps you to solve simple interest problems quickly and correctly in competitive exams. Practice more simple interest questions with answers. 

For more Simple Intrest questions and answers, Visit next page.