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SIMPLE INTEREST 
Std:VII
 What do you observe? 
What comes in your mind when 
you see this picture? 
 What do we call it in 
mathematical terms?
imple Interest
What is simple interest? 
We borrow some amount or money from a bank 
or a money lender 
This borrowed amount is called as...
T = N
1) You want to buy this tractor, It costs 
Rs.15,000. 
You decide to get a five year loan with a 
6.5% interest rate for R...
Given 
Interest Paid=? 
Principal(loan amount) = Rs.15,000 
Rate = 6.5p.c.p.a. 
Period(N) = 5 years 
Solution: 
I = P x N ...
I = 15000x5x6.5 
100 
= 4,87,500 
100 
=4,875 
To buy this tractor we will 
pay Interest of Rs 4,875
 The simple interest on Rs. 45,000 in 3 
years is Rs. 13,500. What is the rate of 
Interest? 
Given 
o Interest Paid=Rs.1...
 Solution: 
I = P x N x R 
100 
13,500 =45000x3xR 
100 
R = 13500x100 
45000x3 
=10 p.c.p.a. 
The Rate of Interest = 10 p...
A certain sum of money earns an interest 
of Rs.3,630 in 3 years at the rate of 11 
p.c.p.a, what is the principal? 
Given...
 Solution: 
I = P x N x R 
100 
3630 =Px3x11 
100 
P= 3630x100 
11x3 
=Rs.11,000 
The Principal amount is Rs.11,000
 The additional amount paid on a loan 
amount is called Simple Interest. 
 The Formula for Simple Interest 
(S.I.) is: 
...
 Define Simple Interest. 
 What Is: 
P = ? 
R= ? 
Solve the Following Questions: 
Sr. No. Principal 
Rs. 
Rate of 
Inte...
Simple interest
Simple interest
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Simple interest

The power point explains the concept of simple interest and the development of formula of simple interest.It also attempts to solve few problems.

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Simple interest

  1. 1. SIMPLE INTEREST Std:VII
  2. 2.  What do you observe? What comes in your mind when you see this picture?  What do we call it in mathematical terms?
  3. 3. imple Interest
  4. 4. What is simple interest? We borrow some amount or money from a bank or a money lender This borrowed amount is called as loan. However, at the time of returning the loan to the bank or the money lender we have to pay back an amount somewhat bigger than the loan. This additional amount is called as SIMPLE INTEREST.
  5. 5. T = N
  6. 6. 1) You want to buy this tractor, It costs Rs.15,000. You decide to get a five year loan with a 6.5% interest rate for Rs.15,000. How much interest will you pay?
  7. 7. Given Interest Paid=? Principal(loan amount) = Rs.15,000 Rate = 6.5p.c.p.a. Period(N) = 5 years Solution: I = P x N x R 100
  8. 8. I = 15000x5x6.5 100 = 4,87,500 100 =4,875 To buy this tractor we will pay Interest of Rs 4,875
  9. 9.  The simple interest on Rs. 45,000 in 3 years is Rs. 13,500. What is the rate of Interest? Given o Interest Paid=Rs.13,500  Principal(loan amount) = Rs.45,000  Rate = ?  Period(N) = 3years
  10. 10.  Solution: I = P x N x R 100 13,500 =45000x3xR 100 R = 13500x100 45000x3 =10 p.c.p.a. The Rate of Interest = 10 p.c.p.a.
  11. 11. A certain sum of money earns an interest of Rs.3,630 in 3 years at the rate of 11 p.c.p.a, what is the principal? Given o Interest Paid=Rs.3,630  Principle(loan amount) = ?  Rate = 11p.c.p.a.  Period(N) = 3years
  12. 12.  Solution: I = P x N x R 100 3630 =Px3x11 100 P= 3630x100 11x3 =Rs.11,000 The Principal amount is Rs.11,000
  13. 13.  The additional amount paid on a loan amount is called Simple Interest.  The Formula for Simple Interest (S.I.) is: S.I.= P x R x N 100
  14. 14.  Define Simple Interest.  What Is: P = ? R= ? Solve the Following Questions: Sr. No. Principal Rs. Rate of Interest p.c.p.a. Number of years 1 9000 10 3 2 15000 11 2

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