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A man has invested ₹65,000 at a rate of 721% per annum simple interest for 6 years. Find the amount that he will receive after 6 years.
₹95,750
₹94,250
₹28,750
₹29,250
₹94,250
Calculate simple interest directly: Interest = (Principal × R × T) / 100 = 65000 × (15/2) × 6 / 100 = 650 × 15 × 3 = 29,250. Final Amount = 65,000 + 29,250 = 94,250.
Principal P = ₹65,000, Rate R = 7 1/2% = 15/2% per annum, Time T = 6 years
A=P(1+100R×T)
Calculate simple interest directly: Interest = (Principal × R × T) / 100 = 65000 × (15/2) × 6 / 100 = 650 × 15 × 3 = 29,250. Final Amount = 65,000 + 29,250 = 94,250.
Students often calculate the interest for one year and forget to multiply by 6, or misinterpret 7 1/2% as 7.5% and miscalculate the simple arithmetic, or confuse Simple Interest with Compound Interest.
Identify given parameters
Principal P=₹65,000, Rate R=721%=7.5%=215%, and Time T=6 years.
P=65000,R=215,T=6
Calculate Simple Interest
Use the Simple Interest formula SI=100P×R×T. Substituting the values: SI=10065000×7.5×6=650×45=29,250.
SI=10065000×7.5×6=29,250
Calculate Total Amount
The amount received is the sum of the principal and the interest: A=P+SI.
A=65000+29250=94,250
B is correct because the total amount received after 6 years is the sum of the principal ₹65,000 and the calculated simple interest of ₹29,250, resulting in ₹94,250.
This concept is fundamental to banking and finance problems. Always differentiate between Simple Interest (linear growth) and Compound Interest (exponential growth) in competitive exams.
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