$6 000 was put in a fixed deposit account on 1st January, 2001 for 6 months. The rate ofsimple interest was 7.5% per annum. On 1st July, 2001 the total amount received wasreinvested for a further 6 months at 7% per annum. Calculate the final amount received tthe end of the year

To solve this problem, we need to calculate the interest for each 6-month period separately and then add them to the initial amount.

Step 1: Calculate the interest for the first 6 months. The formula for simple interest is I = PRT/100, where P is the principal amount, R is the rate of interest, and T is the time in years.

For the first 6 months, P = $6000, R = 7.5%, and T = 0.5 (since 6 months is half a year).

So, I = 6000 * 7.5 * 0.5 / 100 = $225.

Step 2: Calculate the total amount after the first 6 months. This is the initial amount plus the interest, so $6000 +$225 = $6225.

Step 3: Calculate the interest for the second 6 months. Now, we reinvest the total amount from step 2 for another 6 months at a rate of 7%. So now, P = $6225, R = 7%, and T = 0.5.

So, I = 6225 * 7 * 0.5 / 100 = $217.875.

Step 4: Calculate the total amount at the end of the year. This is the amount from step 2 plus the interest from step 3, so $6225 +$217.875 = $6442.875.

So, the final amount received at the end of the year is $6442.875.