Question

Find the amount to be paid at the end of 3 years in each case: 

1. Principal = Rs 1,200 at 12% p.a. 
2.  Principal = Rs 7,500 at 5% p.a.

Answer 1

(a) Principal (P) = Rs \(1200\)
Rate (R) = \(12 \%\) p.a. 
Time (T) = \(3\) years

\(S.I = \frac{P\times R\times T}{100}\)

= \(\frac{1200\times 12\times3}{100}\)

= Rs \(432\)

Amount = \(P + S.I\).

= \(1200 + 432\)

= Rs \(1632\)

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(b) P = Rs \(7500\), R = \(5\%\) p.a.
T = \(3\) years

\(S.I = \frac{P\times R\times T}{100}\)

\(=\frac{7500\times5\times3}{100}\)

= Rs \(1125\)

Amount = \(7500 + 1125\)

= Rs \(8625\)

Read more: Simple Interest Formula