1) Rajiv deposited Rs.10,000 into a savings account that offers a simple interest rate of 6% per year. Ifhe keeps the money in the account for 3 years:a. Write the formula for finding the simple interest when the principal (P), rate (R), and time (T) aregiven.b. Calculate the total interest earned by Rajiv.c. Find the final amount in his savings account after the interest is added
Question
- Rajiv deposited Rs.10,000 into a savings account that offers a simple interest rate of 6% per year. Ifhe keeps the money in the account for 3 years:a. Write the formula for finding the simple interest when the principal (P), rate (R), and time (T) aregiven.b. Calculate the total interest earned by Rajiv.c. Find the final amount in his savings account after the interest is added
Solution
a. The formula for finding the simple interest when the principal (P), rate (R), and time (T) are given is:
I = PRT/100
where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest (per year) T = Time (in years)
b. To calculate the total interest earned by Rajiv, we substitute the given values into the formula:
I = (10,000 * 6 * 3) / 100 I = 1800
So, Rajiv earned Rs.1800 as interest.
c. The final amount in his savings account after the interest is added is the sum of the principal and the interest.
Final amount = Principal + Interest Final amount = 10,000 + 1800 Final amount = Rs.11,800
So, the final amount in Rajiv's savings account after 3 years will be Rs.11,800.
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