Question

Aakash deposited 25000 rupees in a bank at a rate of 8 p.c.p.a for 3 years. How much interest does he get every year? How much altogether?

Answer 1

Hint: According to the question we have to determine the interest and how much together when Aakash deposited 25000 rupees in a bank at a rate of 8 p.c.p.a for 3 years. So, first of all we were given in the question that Aakash deposited 25000 rupees which is the principal amount he deposited, rate of interest provided by the bank is 8% and he invested the amount in the bank for 3 years.
Now, we have to determine the simple interest with the help of the formula to determine the simple interest as mentioned below:

Formula used: $ \Rightarrow S.I. = \dfrac{{P \times R \times T}}{{100}}..................(A)$
Where, S.I. is the simple interest, R is the rate of interest, T is the time and P is the principal amount. Hence, with the help of the formula (A) above we can easily determine the simple interest.

Complete step-by-step solution:
Step 1: First of all we have to determine the simple interest with the help of the formula (A) as mentioned in the formula hint.
$
   \Rightarrow S.I. = \dfrac{{25000 \times 8 \times 3}}{{100}} \\
   \Rightarrow S.I. = 6000rs
 $
Step 3: Now, as we have obtained the simple interest, we can now obtain the total amount on the principal amount. Hence,
$
   = 25000 + 6000 \\
   = 31000rs
$

Hence, with the help of the formula as mentioned in the solution hint we have obtained the simple interest 6000rs and total amount 31000rs.

Note: To obtain the simple interest first we have to know about the amount which is invested in the bank and it is also required the rate of interest which is provided by the bank per annum and also the time duration for which the amount is to be invested. Simple interest is calculated on the principal amount. Compound interest is calculated on both principal and interest amount.