Question

Ramesh deposited rs. 15600 in a fixed deposit at the rate of 10% per annum simple interest. After every second year, he adds his interest earnings to the principal. The interest at the end of fourth year is

Answer 1

Answer:

Rs 3744

Step-by-step explanation:

Given  

Ramesh deposited rs. 15600 in a fixed deposit at the rate of 10% per annum simple interest. After every second year

Given principal = Rs 15,600

Rate = 10%

We know that S I = P x R x T / 100

                            = 15,600 x 10 x 2 / 100  

                            = Rs 3120

New principal for next two years will be  

15,600 + 3120 = Rs 18,720

Now interest at the end of fourth year will be

S.I = 18,720 x 10 x 2 / 100

            = Rs 3744

So required S.I is Rs 3744.