Question

Ahmed Chacha borrowed Rs25000 at 12 p.c.p.a for a year. What amount will he have to return to the bank at the end of the year?

Answer 1

Hint: This question can be directly solved by using the formula for finding interest and then adding it to the principal to get the answer. The interest formula is $ Interest = \dfrac{P\times T\times R}{100} $. Here, P is the principal, T is the time and R is the rate. Therefore, substitute the given values in the formula. Note that time is one year.

Complete step-by-step solution:
This question can be directly solved by using the formula for finding interest and then adding it to the principal to get the answer. The interest formula is $ Interest = \dfrac{P\times T\times R}{100} $. Here, P is the principal, T is the time and R is the rate.
Given are P = 25000 , R = 12, T = 1 year
Therefore, substituting these values in the formula, we get,
$\Rightarrow I = \dfrac{25000\times 1\times 12}{100} $.
$\Rightarrow I = 3000 $.
Therefore, we get the interest as 3000 rupees.
Now, to get the final answer, we need to add the interest to the principal amount which is 25000 rupees. Hence, we get the final answer as:
$\Rightarrow A = 25000 + 3000 $.
$\Rightarrow A = 28000 $.
Therefore, we get the amount is Rs.28000.
Therefore, the final answer to the question is Rs.28000.

Note: These questions are formula based, so it is important to learn the formulas. Without these, you will not be able to solve the problems. Also, you should be careful while doing the substitutions, If one goes wrong, then the whole answer goes wrong. Sometimes students get confused with the terms compound interest and simple interest so they should remember the difference between these two terms while solving the problems.