Question

Find the simple interest on ₹ 50,000 at 12 1/2 % per annum for 3 years. Also, find the amount.​

Answer 1

It is given that

Principal (P) = 50000

Rate of interest (r) = 8% p.a. = 4% semi-annually

Period (n)= 1

2

1

years = 3 semi-annually

We know that

Amount = P(1+r/100)

n

Substituting the values

= 50000(1+4/100)

3

By further calculation

= 50000(26/25)

3

= 50000×26/25×26/25×26/25

= 56243.20

Here

Compound interest = A - P

Substituting the values

= 56243.20−50000

= 6243.20