Interest basics

Interest ∴ Interest(I)=Amount(A)-Principal(P) = 5,400-5000=Rs 400 Lokesh decides to deposit Rs. 5000 in a bank for 1 year. The amount deposited is called the Principal (P). In this case, Principal (P)=Rs 5,000. After 1 year , the bank provides him an additional amount (example Rs. 400) which is called interest. In this case, Interest (I) = Rs. 400. The amount received after the end of 1st year is called Amount(A) In this case, Amount (A)= Principal(P)+Interest(I) = Rs. 5000 + Rs. 400 = Rs 5,400. Therefore, Principal(P)=Amount(A)-Interest(I) ∴ Interest(I)=Amount(A)-Principal(P) = 5,400-5000=Rs 400 Note: In simple interest, the interest amount remains the same because the interest is calculated based on the original principal amount. 

5000 500 ? We know that A=P+I A=5000+500 ∴ A=5500 12,500 ? 17,500 Fill in the blanks Principal Interest Amount (P) (I) (A) 5000 500 ? We know that A=P+I A=5000+500 ∴ A=5500 12,500 ? 17,500 We know that I=A-P I=17500-12500 ∴ I=5000 ? 6000 25000 We know that P=A-I P=25000-6000 ∴ P=19000

Try these Find amount when principal is Rs 2500 and interest is Rs 275 Find Interest when principal is Rs 1600 and amount is Rs 2150 Find principal when interest is Rs 420 and amount is Rs 900