Question

Mr Patel invested $12 000 in an investment fund. The bank paid 4% interest at the end of each year. How much interest did he earn at the end of each year? Show the step by step explanation

Answer 1

Answer:

Step-by-step explanation:

Principal = $12000

Rate of interest = 5%

Time = 1 year

You have not specified whether you want simple interest or compound. I will do the both

SIMPLE INTEREST

S.I = P x R x T / 100

= 12000 x 4 x 1 / 100

= 48000 / 100

= 480

If Mr. Patel invested at simple interest then he will get rs. 480 every year.

COMPOUND INTEREST

A = P(1 + R / 100)^n

= 12000 (1 + 4 / 100)^1

= 12000 ( 1 + 1 / 25)^1

= 12000 (25 + 1 / 25)^1

= 12000 x 26 / 25

= 12480

C.I = A - P

= 12480 - 12000

= 480

Therefore, Mr. Patel gets rs. 480 after every year if he invests at compound interest.

We see that both S.I and C.I are same so you can use any method.

MARK MY ANSWER AS BRAINLIEST