Question

If principal amount is $\$3000$, rate of interest is 12% per annum and time period is 1 year, then

• A. Simple interest $=\$600$
• B. Simple interest $=\$360$
• C. Amount $=\$3600$
• D. Amount $=\$3360$

Answer 1

Answer: (B), (D)

Amount $=\$3360$

$\text{Given, P = Principal}=\$3000$
$\text{R = Rate of interest}=12\%$
$\text{T = Time period = 1 year}$

$\because \text{Simple Interest}=\frac{PRT}{100}$
$\Rightarrow \text{Simple Interest}=\frac{3000\times 12\times 1}{100}$
$\Rightarrow \text{Simple Interest}=\frac{30\times 100\times 12\times 1}{100}$
$\Rightarrow \text{Simple Interest}=30\times 12\times 1$
$\Rightarrow \text{Simple Interest}=360$

We get the total amount by adding the simple interest to the principal.
$\Rightarrow \text{Amount = Principal + Simple interest}$
$\Rightarrow \text{Amount}=\$3000+\$360$
$\Rightarrow \text{Amount}=\$3360$

Hence, the simple interest at the end of 1 year is $\$360$ and amount is $\$3360.$