Question

Karthik borrows `24000 from a bank at 12% p.a
simple interest. He repays 20% of the principal at the
end of every year. What is the simple interest that has
accrued for the first four years?

Answer 1

Given :

The principal borrowed from bank = p = Rs 24000

The rate of interest = r = 12% pa , at simple interest

The amount repaid at end of year = 20% of principal

Time period = t = 4 years

To find :

The simple interest that has  accrued for the first four years

Solution :

From Simple Interest method

SI = $\dfrac{Principla \times rate \times Time}{100}$

    = $\dfrac{p\times r \times t}{100}$

    = $\dfrac{24000 \times 12 \times 4}{100}$

    = Rs 11520

Hence, The simple interest that has  accrued for the first four years is Rs 11520  Answer

Answer 2

Given:

Principal, P = 24000

Interest rate, R = 12%

Time, T = 4 years

To Find:

Simple Interest, SI = ?

Solution:

As we know,

$Simple \ Interest, SI = \frac{P\times R\times T}{100}$

On putting the estimated values in the above mentioned formula, we get

⇒                              $=\frac{24000\times 12\times 4}{100}$

⇒                              $=\frac{1152000}{100}$

⇒                              $=11520$

Hence, The simple interest that accumulated in the first 4 years will be "Rs 11520".