Question

Find the amount to be paid at the end of $3$ years in each case:
(a) Principal $=₹1,200$ at an interest of $12\%$ p.a.
(b) Principal $=₹7,500$ at an interest of $5\%$ p.a.

Answer 1

(a) Principal = ₹1,200 at an interest of 12% p.a.

Principal $=₹1,200$, rate $=12\%$p.a., time $=3$ years

We know that
Simple interest(I) $=$ $\frac{\text{principal}\times \text{rate}\times \text{time}}{100}$

I $=\frac{₹1,200\times 12\times 3}{100}$

I $=\frac{43,200}{100}$

I $=₹432$

(b) Principal $=₹7,500$ at an interest of $5\%$ p.a.

Principal $=₹7,500$, rate $=5\%$ p.a., time $=3$ years

We know that
Simple interest(I) $=\frac{\text{principal}\times \text{rate}\times \text{time}}{100}$

I $=\frac{₹7,500\times 5\times 3}{100}$

I $=\frac{1,12,500}{100}$

I $=₹1,125$