Class 7 Exam > Class 7 Questions > Check whether this is correct : the amount to...
Start Learning for Free
Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest?
Most Upvoted Answer
Check whether this is correct : the amount to be paid is the sum of pr...
Understanding Principal and Simple Interest
When discussing loans or investments, it's essential to differentiate between the principal amount and the interest accrued.
Principal Amount
- The principal is the initial sum of money that is borrowed or invested.
- This amount does not change over time; it remains constant throughout the investment or loan duration.
Simple Interest
- Simple interest is calculated on the principal amount at a fixed rate over a specific time period.
- The formula for simple interest is: Interest = Principal x Rate x Time.
- It is essential to note that the interest accumulated is separate from the principal.
Total Amount to be Paid
- The total amount to be paid back at the end of the loan or investment period is the sum of the principal and the interest earned or owed.
- This can be expressed as: Total Amount = Principal + Interest.
Clarification on Rate of Interest
- The rate of interest is a percentage that determines how much interest will be paid on the principal over time.
- It is not an amount to be paid but rather a factor used to calculate the interest.
Conclusion
- In summary, the total amount to be paid is indeed the sum of the principal and the simple interest accrued.
- The rate of interest serves as a basis for calculating the interest, not as an amount to be paid.
When discussing loans or investments, it's essential to differentiate between the principal amount and the interest accrued.
Principal Amount
- The principal is the initial sum of money that is borrowed or invested.
- This amount does not change over time; it remains constant throughout the investment or loan duration.
Simple Interest
- Simple interest is calculated on the principal amount at a fixed rate over a specific time period.
- The formula for simple interest is: Interest = Principal x Rate x Time.
- It is essential to note that the interest accumulated is separate from the principal.
Total Amount to be Paid
- The total amount to be paid back at the end of the loan or investment period is the sum of the principal and the interest earned or owed.
- This can be expressed as: Total Amount = Principal + Interest.
Clarification on Rate of Interest
- The rate of interest is a percentage that determines how much interest will be paid on the principal over time.
- It is not an amount to be paid but rather a factor used to calculate the interest.
Conclusion
- In summary, the total amount to be paid is indeed the sum of the principal and the simple interest accrued.
- The rate of interest serves as a basis for calculating the interest, not as an amount to be paid.
Attention Class 7 Students!
To make sure you are not studying endlessly, EduRev has designed Class 7 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 7.
|
Explore Courses for Class 7 exam
|
|
Similar Class 7 Doubts
Top Courses for Class 7View all
Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest?
Question Description
Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest? for Class 7 2024 is part of Class 7 preparation. The Question and answers have been prepared according to the Class 7 exam syllabus. Information about Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest? covers all topics & solutions for Class 7 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest?.
Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest? for Class 7 2024 is part of Class 7 preparation. The Question and answers have been prepared according to the Class 7 exam syllabus. Information about Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest? covers all topics & solutions for Class 7 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest?.
Solutions for Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest? in English & in Hindi are available as part of our courses for Class 7.
Download more important topics, notes, lectures and mock test series for Class 7 Exam by signing up for free.
Here you can find the meaning of Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest? defined & explained in the simplest way possible. Besides giving the explanation of
Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest?, a detailed solution for Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest? has been provided alongside types of Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest? theory, EduRev gives you an
ample number of questions to practice Check whether this is correct : the amount to be paid is the sum of principal and simple interest, not the rate of interest? tests, examples and also practice Class 7 tests.
|
|
Explore Courses for Class 7 exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup