Question

Nadim invests a sum of ₹ 8,000 in a fund giving 12.5 % p.a rate of interest.Find the amount received by him at the end of 3 years.

• A. ₹ 10,000
• B. ₹ 11,000
• C. ₹ 12,000
• D. ₹ 15,000

Answer 1

The correct option is B ₹ 11,000

Given, time = 3 years.
The sum invested = ₹ 8,000.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R% p.a S.I is given by $\frac{P\times R\times T}{100}$.

So, Interest earned = $\frac{8,000\times 12.5\times 3}{100}=₹3,000$

We know that,
Principal + Interest = Amount.
Hence, Amount = ₹ (8,000 + 3,000) = ₹ 11,000.

So, the Amount received after 3 years = ₹ 11,000.