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Ramesh invested ₹1,232 at 5% p.a. simple interest in a bank. What amount will he get after 3 years?
₹1,848.80
₹1,416.80
₹2,145.80
₹1,285.80
₹1,416.80
Calculate 5% of ₹1,232 as 61.6. For 3 years, the total simple interest is 3 × 61.6 = 184.8. Finally, add this interest to the principal: 1,232 + 184.8 = 1,416.8.
Principal P = ₹1,232, Rate R = 5% p.a., Time T = 3 years.
A=P×(1+100R×T)
Calculate 5% of ₹1,232 as 61.6. For 3 years, the total simple interest is 3 × 61.6 = 184.8. Finally, add this interest to the principal: 1,232 + 184.8 = 1,416.8.
Many students mistake simple interest for compound interest, or calculate the interest but forget to add it back to the principal to find the total amount.
Calculate Simple Interest
Simple interest is calculated using the formula SI=100P×R×T. Substituting the given values: SI=1001232×5×3
SI=1001232×15=184.8
Calculate Total Amount
The total amount A received after the time period is the sum of the principal P and the simple interest SI.
A=1232+184.8=1416.8
Final Verification
The calculated amount is ₹1,416.80, which matches option B.
A=₹1,416.80
B is correct because the simple interest on ₹1,232 for 3 years at 5% is ₹184.80, making the total amount ₹1,416.80.
This concept of total amount (Principal + Interest) is fundamental to both Simple Interest and Compound Interest topics; always differentiate between them clearly before starting calculations.
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