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Example 4 (Principal and Simple Interest) A bank gives 10% Simple Interest (S.I) on deposits by senior citizens. Draw a graph to illustrate the relation between the sum deposited and simple interest earned. Find from your graph. Given, Rate of Simple Interest = R = 10% The formula for simple interest is Simple Interest = (𝑃 × 𝑅 × 𝑇)/100 Here, P = Money deposited / Principal R = Rate of Interest T = Number of years We need to make a graph of sum deposited and simple interest earned So, finding different values of Interest for different Values of P Here, we take Time = 1 year Example 4 (a) the annual interest obtainable for an investment of Rs.250. So, the annual interest obtained on Rs. 250 is Rs 25 Example 4 (b) the investment one has to make to get an annual simple interest of Rs.70 So, investment made to get interest of Rs. 70 is Rs 700

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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.