If the principal is $800 and the rate of interest is 6% per annum, what will be

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Question: If the principal is $800 and the rate of interest is 6% per annum, what will be the total amount after 4 years at simple interest?

Options:

Correct Answer: $1040

Solution:

Total amount = Principal + SI = 800 + (800 * 6/100 * 4) = $1040.

If the principal is $800 and the rate of interest is 6% per annum, what will be the total amount after 4 years at simple interest?

If the principal is $800 and the rate of interest is 6% per annum, what will be the total amount after 4 years at simple interest?

Step 1: Identify the principal amount, which is $800.
Step 2: Identify the rate of interest, which is 6% per annum.
Step 3: Identify the time period, which is 4 years.
Step 4: Calculate the simple interest (SI) using the formula: SI = Principal * Rate * Time.
Step 5: Substitute the values into the formula: SI = 800 * (6/100) * 4.
Step 6: Calculate the interest: SI = 800 * 0.06 * 4 = 192.
Step 7: Calculate the total amount by adding the principal and the simple interest: Total Amount = Principal + SI.
Step 8: Substitute the values: Total Amount = 800 + 192.
Step 9: Calculate the total amount: Total Amount = 992.

Simple Interest Calculation – Understanding how to calculate simple interest using the formula SI = Principal * Rate * Time.
Total Amount Calculation – Knowing how to find the total amount by adding the principal to the calculated simple interest.