Question

Find the amount on rs 1000 for 6 months, at 8 percent per annum

Answer 1

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Given -

Principal, Time, Rate of interest.

To find -

The Amount

There are two ways to find the amount :-

i) By Simple Interest

ii) By Compound Interest

In this question it is not mentioned whether to use Simple Interest method or to use Compound Interest method.

So I am using Simple Interest to find the amount.

(Note : Simple Interest and Compound Interest are two different methods. The answer will also be different. Here you haven't mentioned which method to use.)

Principal = Rs 1000

Time = 6 months = 1/2 years

Rate of interest = 8%

We know that SI (Simple Interest) =

$\frac{P \times R \times T}{100}$

So Simple Interest =

$\frac{P \times R \times T}{100} \\ = \frac{1000 \times 8 \times \frac{1}{2} }{100} \\ = 40$

Simple Interest = Rs 40

Amount = Principal + Simple Interest (SI)

= Rs 1000 + Rs 40

= Rs 1040

Amount is Rs 1040