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Question

Answers

A.Rs. 4800

B.Rs. 4900

C.Rs. 5000

D.Rs. 5100

Answer

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Simple interest \[ = \dfrac{{PRT}}{{100}}\] where, \[P\] is the principal amount, \[R\] is the rate of interest and \[T\] is the time period.

Here, principal amount is Rs. 48,000 i.e. \[P = Rs.48000\] and rate of interest is \[10\% \] i.e. \[R = 10\% \].

We will find the interest on the principal amount for the first year. Therefore, time will be 1 year i.e. \[T = 1{\text{year}}\]. We know that the compound interest on an amount for one year is equal to the simple interest on that amount for one year. Therefore, we get

Interest for one year \[ = \dfrac{{PRT}}{{100}}\]

Substituting \[P = Rs.48000\], \[R = 10\% \] and \[T = 1{\text{year}}\] in the above equation, we get

Interest for one year \[ = \dfrac{{48000 \times 10 \times 1}}{{100}}\]

Interest for one year \[ = Rs.4800\]

Hence the interest for the first year on the amount Rs. 48,000 is Rs. 4800.

Formula of the compound interest, compound interest \[ = P{\left( {1 + \dfrac{R}{{100}}} \right)^T}\] where, \[P\] is the principal amount,\[ R\] is the rate of interest and \[T\] is the time period.