Question

Bhuvan made a fixed deposit of $Rs.15,000$ in a bank on $1.1.2007$ for $219$ days under $12\% $ pa simple interest. Find out the maturity value.

Answer 1

Hint: In the above question, we are given with money deposited and the number of days for which the amount was deposited. Now, we are also given the interest rate per annum. So, we can use the formula $I = p \times r \times t$ to find the total interest. We know that the maturity value is the sum of the money deposited and the total interest on that money. So, we can simply find the total interest and add it into the money deposited to get the maturity value asked in the question.

Complete step-by-step answer:
In the above question, we are given:
Money deposited or principle amount, $p = Rs.15,000$
Number of days for which the money was deposited $ = 219$
So, the time period will be:
$t = \dfrac{{219}}{{365}}$
Rate of interest, $r = 12\% $ per annum
Now, using the formula Interest $ = $ principal amount $ \times $ rate of interest$ \times $ time period
Now, substituting the given values in the above formula, we get
$
   \Rightarrow I = p \times r \times t \\
   \Rightarrow I = 15000 \times 12 \times \dfrac{{219}}{{365}} \\
   \Rightarrow I = 1080 \\
 $
So, the total interest on the amount deposited is $Rs.1080$ .
Now, to find the maturity value, we need to find the sum of the amount deposited and the total interest on that amount.
Therefore, Maturity value $ = $ principle$ + $ total interest
$
   \Rightarrow 15,000 + 1,080 \\
   \Rightarrow 16,080 \\
 $

Thus, the maturity value is $Rs.16,080$.

Note:
In these types of questions, we have to use the simple interest formula. We are given with the principal amount, the time period and the rate of interest. Also, be careful with the time given in the question. We always need to convert the time in per year as the rate of interest given is in per annum. We have to calculate the interest carefully and then, we can find the asked maturity value.