Question

Find the interest on Rs 10,000 for 5 years at the rate of 11 p.c.p.a.

Answer 1

Principal (P) = Rs 10,000
Time (N) = 5 years
Rate (R) = 11 p.c.p.a
Interest = I = ?
We have $\mathrm{I}=\frac{\mathrm{P}\times \mathrm{R}\times \mathrm{N}}{100}$
$$\begin{gathered} \mathrm{I}=\frac{10000\times 11\times 5}{100} \\ \Rightarrow \mathrm{I}=100\times 11\times 5=\mathrm{Rs}5500 \\ \mathrm{Therefore},\mathrm{interest}=\mathrm{Rs}5500 \end{gathered}$$