If a sum of $1200 is invested at a simple interest rate of 9% per annum, what wi

₹0.0

Question: If a sum of $1200 is invested at a simple interest rate of 9% per annum, what will be the total amount after 3 years?

Options:

Correct Answer: $1450

Solution:

Simple Interest = 1200 × 9 × 3 / 100 = $324. Total Amount = 1200 + 324 = $1524.

If a sum of $1200 is invested at a simple interest rate of 9% per annum, what will be the total amount after 3 years?

If a sum of $1200 is invested at a simple interest rate of 9% per annum, what will be the total amount after 3 years?

Step 1: Identify the principal amount (the initial investment), which is $1200.
Step 2: Identify the interest rate, which is 9% per annum.
Step 3: Identify the time period for the investment, which is 3 years.
Step 4: Calculate the simple interest using the formula: Simple Interest = Principal × Rate × Time / 100.
Step 5: Substitute the values into the formula: Simple Interest = 1200 × 9 × 3 / 100.
Step 6: Calculate the simple interest: 1200 × 9 = 10800; then 10800 × 3 = 32400; finally, 32400 / 100 = 324.
Step 7: Add the simple interest to the principal to find the total amount: Total Amount = Principal + Simple Interest.
Step 8: Substitute the values: Total Amount = 1200 + 324.
Step 9: Calculate the total amount: 1200 + 324 = 1524.

Simple Interest Calculation – Understanding how to calculate simple interest using the formula: Interest = Principal × Rate × Time / 100.
Total Amount Calculation – Adding the calculated interest to the principal to find the total amount after the investment period.