Question

ishaan deposited rs 500 into a savings account at a local bank that earned 5 1/2% interest per year. How much interest doeshe earn per year

Answer 1

★Question -

Ishaan deposited ₹ 500 into a savings account at a local bank that earned 5 1/2% interest per year. How much interest does he earn per year.

»Given:

Principal (P) = ₹500

Rate (R) = 5 1/2%

Time = 1 year

» We know that,

${\purple{\boxed{S.I = \frac{P\times R \times T}{100}}}}$

» Solution-

by putting the values

$\implies\tt SI = \frac{500 \times5.5\times 1}{100}\\ \\ \\ \implies\tt = \frac{500 \times\55}{1000}\\ \\ \\ \implies\tt = \frac{\cancel{500} \times 55}{\cancel{1000}} = \frac{55}{2} \\ \\ \\ \implies\tt S.I = 27.5 \:rupees$

${\pink{\boxed{\boxed{Interest\:paid\: after\:1\:year = 27.5 \: rupees}}}}$

★Additional Information -

$\purple{Simple \:Interest}$ - Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

$\purple{Compound\: interest}$ - Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Formula of C.I =

C.I = $A - P(1+\frac{R}{100})^t\\ \\ \\ where,\\ \\ \\ A = Amount\\ \\ \\ P = principal\\ \\ \\ R = rate\\ \\ \\ T= time$

Answer 2

Answer:

Hence, Interest earned by Ishaan per year = ₹ 27.5

Step-by-step explanation:

Given,

• Price deposited by Ishaan = ₹ 500

• Interest rate on the money deposited by Ishaan = 5 1/2 % = 11/5 % = 5.5 %

• Time for which interest is to be calculated = 1 year

From the above information, we get,

➡ Principal, P = ₹ 500

➡ Rate, R = 5.5 %

➡ Time, T = 1 year

Since, the interest is to calculated for 1 year, we have to calculate Simple Interest.

• Simple Interest is the method of calculating interest money on the given principal using rate and time period.

Sinple Interest is denoted by S.I.

We know that ,

Simple Interest = (Principal × Rate × Time) / 100

➡ S.I. = (P × R × T) / 100

By applying the values, we get,

➡ S.I. = (500 × 5.5 × 1) / 100

➡ S.I. = 2750 / 100

➡ S.I. = 27.5 ₹

So, we get, Simple Interest = 27.5 ₹

Hence, Interest earned by Ishaan per year = ₹ 27.5