# What is simple interest?

We do calculate simple interest with principal, rate, and time or term with this formula p*t*r/100. It is not compounded as simple interest only calculated with the principal amount.

In the formula p*r*t/100

• p is Principal
• t is time for term
• r is rate

## Simple interest in java | what is simple interest

import java.util.*;

public class SimpleInterest1

{

public static void main()

{

double p, r, t, si;

Scanner sc=new Scanner(System.in);

System.out.println("Enter Principal, Time and Rate--->");

p=sc.nextDouble();

t=sc.nextDouble();

r=sc.nextDouble();

si=(p*t*r)/100.0;

System.out.println("Simple Interest=" + si);

}

}

In the above program, we have taken Scanner class for inputting principal, rate, and time or term from the user. After taking values of p, t, r then we will calculate simple interest in the si variable.

Second program using methods.

import java.util.*;

public class SimpleInterest

{

double p, t, r, si; //Instance Variable

public double simpleInterest(double p1, double t1, double r1) //Formal parameter

{

p=p1;

t=t1;

r=r1;

si=(p1*t1*r1)/100.0;

return si;

}

public static void main(String args[])

{

SimpleInterest ob=new SimpleInterest();

double pr, time, rate, s; // Local variable

Scanner sc= new Scanner(System.in);

System.out.println("Enter Principal, Time and rate :");

pr= sc.nextDouble();

time= sc.nextDouble();

rate= sc.nextDouble();

s= ob.simpleInterest(pr, time, rate); // Function call, with parameter(Actual parameter)

System.out.println("Simple Interest=" + s);

}

}

In the above program, we have calculated simple interest using the return method. All the values have taken from the main() method and send the values with the method as an actual parameter and that value have received by simpleInterest (double p1, double t1, double r1) method. After calculating the value, the method sends or returns it to the main() method and then prints it on the screen.

Question for ICSE exam

ABC bank declares a new tariff or rate for term deposit schemes for their general customers and senior citizens as given below:

 Term Rate of Interest for General Rate of Interest for Senior Citizen Up to 2 year 7.5% 8.0% Up to 4 years 8.5% 9.0% Up to 6 years 9.5% 10.0% More than 6 years 10.0% 11.0%

The 'senior citizen's rates are applicable to the customers whose age is 65 years or more. Write a program to input the principal in term deposit scheme, age of the customer and the term or time. The program displays the information in the following format:

 Principal Deposited Term/Duration Age Interest earned Amount Paid xxxx xxxx xxxx xxxx xxxx

Solution

import java.util.*;

public class BankDepositSchemes

{

// instance variables

double term, principal, interest, amount, rate;

int age;

// input method for taking values

void input()

{

Scanner sc=new Scanner(System.in);

System.out.println("Enter Principal :");

principal=sc.nextDouble();

System.out.println("Enter Term :");

term=sc.nextDouble();

System.out.println("Enter Age :");

age=sc.nextInt();

}

// Calculate the si

void calculate()

{

if(term<=2)

{

if(age>=65)

{

rate=8.0;

}

else

{

rate=7.5;

}

}

else if(term>2 && term<=4)

{

if(age>=65)

{

rate=9.0;

}

else

{

rate=8.5;

}

}

else if(term>4 && term<=6)

{

if(age>=65)

{

rate=10.0;

}

else

{

rate=9.5;

}

}

else

{

if(age>=65)

{

rate=11.0;

}

else

{

rate=10.0;

}

}

interest=(principal*term*rate)/100.0;

amount=principal + interest;

}

// print the values

void display()

{

System.out.println("Amount Deposited\tTerm\tAge\tInterest Earned\t\tAmount Paid");

System.out.println(principal + "\t\t\t" + term + "\t" + age + "\t" + interest + "\t" + amount);

}

// main() method

public static void main(String args[])

{

BankDepositSchemes ob=new BankDepositSchemes();

ob.input();

ob.calculate();

ob.display();

}

}