Question

*10,000 is invested at 5% interest rate p.a. Find the interest at the end of one
year.
​

Answer 1

Answer:

answer is ₹500(interest).

Answer 2

Answer:

S.I. = ₹ 500

C.I. = ₹ 500

GRAND INTEREST = ₹ 500

Step-by-step explanation:

S.I. : Simple interest

S.I. = P.R.T./100

{ P : Principal }

{ R : Rate }

{ T : Time }

S.I. = ( ₹ 10,000×5×1 )/100

= ₹ 50,000/100

= ₹ 500

C.I. : Compound Interest

C.I. = P { 1 - ( 1 + R/100)^n }

{ P : Principal }

{ R : Rate }

{ n : Number Of Years }

C.I. = ₹ 10,000 { 1 - ( 1 + 5/100 )¹ }

= ₹ 10,000 { 1 - ( 1 + 1/20 )¹ }

= ₹ 10,000 { 1 - ( 21/20 )¹ }

= ₹ 10,000 { 1 - 21/20 }

= ₹ 10,000 { 1/20 }

= ₹ 10,000 × 1/20

= ₹ 10,000/20

= ₹ 500