Question

sumeet deposited ₹ 75000 for 5 years at 7 p.c.p.a in a savings bank. what is the total interest he would receive at the end of period . also find the total amount he would get​

Answer 1

Solution:-

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◍ Here, the question has given us the principal, rate of interest and time that is Rs. 75,000, 7% per annum and for 7 years respectively. Now, the question has asked us to find the interest of it. So to get the answer we need to apply the formula of CI first then we will add ther principal and the CI to get the total amount he would get

ANSWER:-

◈ Total money he will get = Rs. 1,05,191.37.

GIVEN:-

☆ Principal = Rs. 75,000

☆ Rate of Interest = 7% per annum

☆ Time = 5 years

TO FIND:-

↠Amount he will get back = ?

FORMULA:-

⬤ Amount = P[1 + (R / 100)]^t

⬤ CI = Amount - Principal

⬤ Total money he will get = Principal + Compound Interest

SOLVING BY APPLYING THE FORMULA:-

⇨ Principal = Rs. 75,000

⇨ Rate = 7%

⇨ Time = 5 years

⇨ Simple Interest = P × R × T / 100

➢ Amount = 75,000[1 + (7 / 100)]⁵

➢ Amount = 75,000[100 + 7 / 100]⁵

➢ Amount = 75,000[107 / 100]⁵

➢ Amount = 75,000 × 107/100 × 107/100 × 107/100 × 107/100 × 107/100

➢ Cancelling the zeros

➢ Amount = 75 × 107⁵ / 10⁷

➢ Amount = 75 × 14,02,55,17,307 / 1,00,00,000

➢ Amount = 1051913798025 / 1,00,00,000

➢ Amount = 1,05,191.37

Thus, the amount is Rs. 1,05,191.37.

⇨ Compound Interest = Amount - Principal

➢ CI = 1,05,191.37 - 75,000

➢ CI = 30,191.37

⇨ Total money = 75,000 + 30,191.37

⇨ Total money = 1,05,191.37

Hence, we got the answer. The Total money he will get is Rs. 1,05,191.37.

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