Question

Find the interest on Rs 500 for a period of 4 years at the rate of 8% per annum. Also, find the amount to be paid at the end of the period.

Answer 1

Principal amount (P) = Rs 500
Time period (T) = 4 years
Rate of interest (R) = 8% p.a.

Interest = $\frac{P\times R\times T}{100}=\frac{500\times 4\times 8}{100}=\mathrm{Rs}160$

Total amount paid = Principal amount + Interest = Rs 500 + 160
= Rs 660