Question

What sum will amount ro ruppess6600 in 4years at8% per annum simple interest?

Answer 1

Simple interest = (Principal x Rate x Time)/100

Simple Interest = (6600 x 8 x 4)/100 = 2112 RS

Second Method

Rate per annum = percentage of principle you get after a year. i.e interest.

According to Question

rate = 8 %

So you will get 8% at end of 1 year. another 8% at end of 2nd year and so on.

so in 4 year you will get = 8% x 4 = 32% of principal.

i.e 32% of 6600 = 2112 Rs.

It is only applicable in Simple Interest only NOT COMPOUND INTEREST.