Maths-
General
Easy

Question

A   person invests  Rs6000 at 14% interest for 2 years. Calculate
(i) the interest for the 1st year
(ii)   the amount at the end of the first year
(iii) the interest for the second year.

hintHint:

Use the formula of simple interest to find the interest amount.

The correct answer is: C is the correct answer.


    Complete step by step solution:
    (i) We calculate simple interest by the formula,S I equals fraction numerator P T R over denominator 100 end fraction…(i)
    where P is Principal amount, T is number of years and R is rate of interest
    Let the sum of money P = 6000 Rs
    Here, we have T = 1 years, R = 14% and P = 6000 Rs
    On substituting the known values in (i), we get S I equals fraction numerator 6000 cross times 1 cross times 14 over denominator 100 end fraction
    not stretchy rightwards double arrow S I equals fraction numerator 6000 cross times 1 cross times 14 over denominator 100 end fraction equals 840
    We have SI = 840 Rupees as the interest for 1st year.
    (ii)  Formula for total amount = A = P + SI,
    where A is the total amount, P is the principal amount and SI is simple interest .
    We have P = 6000 and SI = 840.
    On substitution, we get A = 6000 + 840 = 6840 Rupees.
    The amount at the end of first year = 6840 Rupees.
    (iii) By the end of first year principal amount becomes, P = 6840 Rupees
    We calculate simple interest for the second year by the formula S I equals fraction numerator P T R over denominator 100 end fraction…(i)
    where P is Principal amount, T is number of years and R is rate of interest
    Let the sum of money P = 6840 Rs
    Here, we have T = 1 years, R = 14% and P = 6840 Rs
    On substituting the known values in (i), we get S I equals fraction numerator 6840 cross times 1 cross times 14 over denominator 100 end fraction
    not stretchy rightwards double arrow S I equals fraction numerator 6840 cross times 1 cross times 14 over denominator 100 end fraction equals 957.6
    We have SI = 957.6 Rupees as the interest for 2nd year.
    Hence option C is the correct answer.

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