What is the formula for calculating simple interest?

I = (P × R × T) / 100

Fill in the blank: The total amount after interest is calculated as A = P + ______.

I

What does the variable 'R' represent in the interest formulas?

Rate of interest

Riddle: I grow with time and change the principal, but I’m not the same each year. What am I?

Compound interest

If a principal of ₹5000 is borrowed at a rate of 5% per annum for 2 years, what is the simple interest?

₹500

Fill in the blank: The amount after 3 years at a simple interest rate of 6% on a principal of ₹2000 is calculated using A = ______.

P + I

True or False: Compound interest is calculated on the original principal only.

False. Compound interest is calculated on the principal plus the accumulated interest.

Which of the following is true about half-yearly compounding? A) Interest is calculated once a year B) Interest is added to principal every 6 months C) Interest is not added at all D) None of the above

B) Interest is added to principal every 6 months

What is the formula for calculating compound interest when compounded half-yearly?

A = P(1 + (r/2)/100)^(n × 2)

Fill in the blank: The time period for interest calculation must match the ______ of the rate.

Unit

What happens to the principal amount in each period of compounding?

It increases as interest is added to it.

Riddle: I start with a principal and grow, my growth depends on my interest, but I am not simple. What am I?

Compound interest

If ₹4000 is invested at a rate of 8% per annum for 3 years, what is the total amount using simple interest?

₹4800

True or False: In compound interest, the interest earned in one period is not added to the principal for the next period.

False. In compound interest, the interest earned is added to the principal for the next period.

What is the effect of increasing the time period on simple interest?

The simple interest increases with an increase in the time period.

What is the formula to calculate Simple Interest (S.I.)?

I = (P × R × T) / 100