Question

Srikanth deposited Rs. 16000 in a bank that paid
simple interest at the rate of 8% p.a. How much
interest does he earn after 2 years?​

Answer 1

Answer :-

• Srikanth will earn an interest on Rs 2560 after 2 years.

Given :-

• Srikanth deposited Rs 16000 in a bank that pays simple interest at the rate of 8% p.a.

To find :-

• The interest he will earn after 2 years.

Step-by-step explanation :-

• Here, the principal is Rs 16000, rate is 8% p.a. and time is 2 years. We have to find the simple interest.

We know that :-

$\underline{ \boxed{\sf SI = \dfrac{Principal \times Rate \times Time}{100}}}$

Here,

• Principal = Rs 16000.
• Rate = 8% p.a.
• Time = 2 years.

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Hence,

$\rm SI = \dfrac{16000 \times 8 \times 2}{100}$

Cutting off the zeroes,

$\rm SI = \dfrac{160 \times 8 \times 2}{1}$

Now let's multiply the remaining numbers since we can't reduce them anymore.

$\rm SI = 160 \times 8 \times 2$

Multiplying the numbers,

$\overline{\boxed{\rm SI = Rs \: 2560}}$

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• The simple interest is Rs 2560. So Srikanth will earn an interest of Rs 2560 after 2 years.