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

1. SIMPLE INTEREST
Std:VII

3.  What do you observe?
What comes in your mind when
you see this picture?
 What do we call it in
mathematical terms?

4. imple Interest

5. 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.

6. T = N

7. 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?

8. 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

9. I = 15000x5x6.5
100
= 4,87,500
100
=4,875
To buy this tractor we will
pay Interest of Rs 4,875

10.  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

11.  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.

12. 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

13.  Solution:
I = P x N x R
100
3630 =Px3x11
100
P= 3630x100
11x3
=Rs.11,000
The Principal amount is Rs.11,000

14.  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

15.  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