Simple Interest Calculation: Explanation of how Rs 8000 become Rs 10000 in two years at simple interest.

Simple Interest Formula:

Simple Interest = (P × R × T) ÷ 100
Where,
P = Principal amount
R = Rate of interest
T = Time duration

Given,
Principal Amount (P) = Rs 8000
Time Duration (T) = 2 years
Simple Interest (SI) = Rs 10000 - Rs 8000 = Rs 2000

Step by Step Calculation:

Step 1: Calculate the Rate of Interest (R)

SI = (P × R × T) ÷ 100
2000 = (8000 × R × 2) ÷ 100
R = (2000 × 100) ÷ (8000 × 2)
R = 12.5%

Step 2: Verify the Calculation

To verify the calculation, let us calculate the simple interest for one year and two years.

SI for one year = (8000 × 12.5 × 1) ÷ 100 = Rs 1000
SI for two years = (8000 × 12.5 × 2) ÷ 100 = Rs 2000

Hence, the calculation is correct.

Conclusion:

To sum up, if a principal amount of Rs 8000 is invested for two years at a rate of interest of 12.5% per annum, the interest earned will be Rs 2000, and the final amount will be Rs 10000.

Principal : 8000
Time : 2yrs
Amount : 10000

P + s.i = A
8000+ ptr/100 = 10000
8000 + (8000*2*R/100) = 10000
80*2*R = 10000-8000
160R = 2000
R = 2000/160
R = 12.5%

Cross Verification ,
Now , p=8k , Time = 2y , R.o.i = 12.5%

PTR + P = A
A = 8000*2*12.5/100 + 8000
A = 2000 + 8000
A = 10000

like how it become .