Join 60,000+ competitive exam aspirants
or with email
Your Cart
Subtotal₹0
Total₹0
Examoogle • User • info@examoogle.com • EE-2024-8821
Chapter 1 of 12 • Page 1 of 248🔒 Protected PDF • Watermarked
Join 60,000+ competitive exam aspirants
A man has invested ₹75,000 at a rate of 721% per annum simple interest for 6 years. Find the amount that he will receive after 6 years.
₹1,08,750
₹75,000
₹69,600
₹1,12,500
₹1,08,750
Calculate interest as a percentage of Principal: Interest = (Rate × Time)% = (7.5 × 6)% = 45%. Amount = 145% of 75,000 = 1.45 × 75,000 = 1,08,750.
Principal P = ₹75,000, Rate R = 7 1/2% = 15/2% per annum, Time T = 6 years
A=P(1+100R×T)
Calculate interest as a percentage of Principal: Interest = (Rate × Time)% = (7.5 × 6)% = 45%. Amount = 145% of 75,000 = 1.45 × 75,000 = 1,08,750.
Many students calculate only the Simple Interest (SI) instead of the Total Amount (A), forgetting to add the Principal to the Interest.
Convert Rate to Decimal
Convert the mixed fraction rate 721% to a decimal value.
R=215%=7.5%
Calculate Simple Interest
Apply the simple interest formula SI=100P×R×T.
SI=10075000×7.5×6=750×45=33750
Find Total Amount
The total amount is the sum of the principal and the interest.
A=P+SI=75000+33750=108750
A is correct because the total amount received after 6 years is ₹1,08,750.
This concept of percentage growth (Rate × Time) is the foundation for understanding Compound Interest and effective annual rates in financial mathematics.
Get instant step-by-step AI explanations, full shift Previous Year Papers (SSC GD, RRB, SSC JE), and regional rank analysis on the official Examoogle App.
Free Download • 100K+ Aspirants