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SAI INTERNATIONAL SCHOOL
CLASS – VII,

SUB: MATHS
CHAPTER-8: COMPARING QUANTITIES
SUBTOPIC: SIMPLE INTEREST

LESSON NOTE:
Simple Interest

When we borrow some money from the bank then we have to pay some interest to the
bank.

The money which we borrow is called the Principal.
The amount which we have to pay to the bank to use that money is called interest.
At the end of the year we return the money to the bank with interest, that money is
called Amount.
Amount = Principal + interest

Where,

SI = Simple interest

P = Principal
R = Rate of Interest

T = time period

Example
Sunita borrows a loan of Rs 5,0000 at 15% per year as the rate of interest. Find the

interest she has to pay at end of one year.
Solution