question_answer 1)

Find the amount to be paid at the end of 3 years in each case: (a) Principal = ` 1,200 at 12% p.a.    (b) Principal = ` 7,500 at 5% p.a.

Answer:

                (a)                 P = ` 1,200 R = 12% p.a. T = 3 years \[I=\frac{PRT}{100}=\frac{1,200\times 12\times 3}{100}=\]`432 A = P + I = 1200 + 432 = ` 1,632. Hence, the amount to be paid at end of 3 years is ` 1,632. (b)                          P = ` 7,500 R = 5% p.a. T = 3 years                 \[\text{I =}\frac{\text{PRT}}{\text{100}}\text{ = }\frac{\text{7,500 }\!\!\times\!\!\text{ 5 }\!\!\times\!\!\text{ 3}}{\text{100}}=\] ` 1,125                 A = P + I \[\Rightarrow \]               A = 7,500 + 1,125 = ` 8,625 Hence, the amount to be paid at the end of 3 years is ` 8,625.