Question
An investor deposits ₹50,000 in a bank that offers a
simple interest rate of 8% per annum. How much interest will the investor earn after 3 years, and what will be the total amount in the account at the end of the period?Solution
Calculate the interest earned: Simple Interest (SI) = (Principal × Rate × Time) / 100 SI = (50,000 × 8 × 3) / 100 SI = (1,200,000) / 100 = ₹12,000 Calculate the total amount in the account after 3 years: Total Amount = Principal + Interest Total Amount = ₹50,000 + ₹12,000 = ₹62,000 Answer: a) ₹12,000, total ₹62,000.
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