Question

If Nitin deposits rupees 25000 in the bank at 6.5 pcpa for 4 years what is the total amount he will get? ​

Answer 1

Solution!!

The concept of interest and amount has to be used here. The principal, rate of interest and time is given in the question. We have to find the amount that the person will get.

Principal (P) = Rs 25,000

Time (T) = 4 years

Rate of interest (R) = 6.5%

We have to find the interest first.

Interest = (P × R × T)/100

Interest = (25,000 × 6.5 × 4)/100

Interest = 250 × 6.5 × 4

Interest = Rs 6,500

Now that we know the interest, we can find out the the amount.

Amount = Principal + Interest

Amount = Rs 25,000 + Rs 6,500

Amount = Rs 31,500