Question

Find the amount and simple interest on Rs. 12,000 at 5% for 4 years

Answer 1

5% of 12000=600

600 into 4 years

=2400

Answer 2

Answer:

Simple interest = 2400Rs.

Amount = 14400Rs.

Step-by-step explanation:

Given: $P=12000Rs., R=5\%, T=4\ years$

We have to find the amount and simple interest.

• As we know that the simple Interest of an amount is calculated by multiplying the interest rate by the principal amount and the time period.  
• The formula is used to calculate the simple interest is:

        $S I=\frac{P R T}{100}$

Where,

$P= Principal \ Amount\\T= Time \ in \ Years\\R= Rate \ of \ Interest\ per\ Annum.$

We are solving in the following way:

Here,

$P=12000Rs., R=5\%, T=4\ years$

Now,

The simple interest will be:

$S I=\frac{P R T}{100}$

$SI=\frac{12000\times5\times4}{100} \\\\SI=\frac{240000}{100} \\\\SI=2400$

Hence, the simple interest will be 2400Rs.

We know that,

Amount = Principle + Simple interest

So,

$Amount = 12000+2400\\Amount = 14400$

Hence, the amount will be 14400Rs.