Question

Find the amount to be paid at the end of 3 years in each case:

(a) Principal = ₹ 1,200 at 12% p.a.

(b) Principal = ₹ 7,500 at 5% p.a.

Answer 1

Here, Principal (P) =  ₹ 1,200, Rate (R) = 12% p.a., Time (T) = 3 years

Simple Interest =(Px R x T)/100

=(1200 x 12 x 3)/100

= ₹ 432

Now, Amount = Principal + Simple Interest

= 1200 + 432

=  ₹ 1,632

(b) Here, Principal (P) = ₹ 7,500, Rate(R) = 5% p.a., Time (T) = 3 years

Simple Interest =(Px R x T)/100

=(7500 x 5 x 3)/100

=₹1,125

Now, Amount = Principal + Simple Interest

= 7,500 + 1,125

= ₹ 8,625