Question
A sum of ₹12,000 is invested at 8% simple interest per
annum. What is the total amount after 5 years?Solution
The formula for simple interest is: Simple Interest (SI) = (P × R × T) / 100, Where P is the principal, R is the rate, and T is the time in years. SI = (12,000 × 8 × 5) / 100 = ₹4,800. Total amount = Principal + SI = ₹12,000 + ₹4,800 = ₹16,800. The total amount after 5 years is ₹16,800.
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