Question

Fill in the blanks to make the statement true: $\mathrm{Interest}=\frac{\mathrm{P}\times \mathrm{R}\times \mathrm{T}}{100}$, where $T$ is $R\%$ is and $P$ is _______.

Answer 1

Explain the formula of Interest

The formula for simple interest (I) is calculated as $\frac{P\times R\times T}{100}$, where $P$ is the Principal amount, $R$ is the Interest rate and $T$ is the Time period.

For example: Consider a principal amount $P$ is invested for a time period (T) of $3$ years at an interest rate (R) of $5\%$.

The interest it provides is $₹800$.

So, in this case we can evaluate the Principal by using the formula $\mathrm{Interest}=\frac{\mathrm{P}\times \mathrm{R}\times \mathrm{T}}{100}$

$$\begin{gathered} \Rightarrow 800=\frac{P\times 5\times 4}{100} \\ \Rightarrow P=\frac{800\times 100}{5\times 4} \\ \Rightarrow P=₹4000 \end{gathered}$$

Thus, the principal amount (P) invested was $₹4000$

Therefore, $\mathrm{Interest}=\frac{\mathrm{P}\times \mathrm{R}\times \mathrm{T}}{100}$, where $T$ is $R\%$ is and $P$ is Principal.