find the interest on Rs 500 for a period of 4 years at the rate of 8% per annum .also,find the out to be paid at the end of the period
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Given Principal = Rs 500, Rate of Interest = 12.5% per annum and Time = 4 years.
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (500 × 4 × 12.5)/100
= Rs 250
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