If the principal is Rs. 5000 and the rate of interest is 12% per annum, what wil

If the principal is Rs. 5000 and the rate of interest is 12% per annum, what will be the total amount after 3 years under simple interest?

If the principal is Rs. 5000 and the rate of interest is 12% per annum, what will be the total amount after 3 years under simple interest?

Step 1: Identify the principal amount (P), which is Rs. 5000.
Step 2: Identify the rate of interest (r), which is 12% per annum. Convert this to decimal by dividing by 100, so r = 0.12.
Step 3: Identify the time period (t), which is 3 years.
Step 4: Use the formula for Simple Interest: Simple Interest = P * r * t.
Step 5: Substitute the values into the formula: Simple Interest = 5000 * 0.12 * 3.
Step 6: Calculate the Simple Interest: 5000 * 0.12 = 600, then 600 * 3 = 1800.
Step 7: Now, calculate the Total Amount by adding the Simple Interest to the Principal: Total Amount = Principal + Simple Interest.
Step 8: Substitute the values: Total Amount = 5000 + 1800.
Step 9: Calculate the Total Amount: 5000 + 1800 = 6800.

Simple Interest Calculation – Understanding how to calculate simple interest using the formula SI = P * r * t, where P is the principal, r is the rate of interest, and t is the time in years.
Total Amount Calculation – Knowing how to find the total amount by adding the principal to the calculated interest.