Question: What will be the total amount after 3 years if Tk. 1200 is invested at a simple interest rate of 5% annually?

Solution:
Here,
Principal, P = Tk. 1200
Rate of Interest, r = 5% = 5/100
Time, n = 3 years

We know,
Simple Interest, I = P × n × r
I = 1200 × 3 × (5/100)
I = 1200 × 3 × 5/100
I = 3600 × 5/100
I = 180 Tk.

Now, the Amount after 3 years, A = P + I
A = 1200 + 180
A = 1380 Tk.

∴ The amount after 3 years will be Tk. 1380.

Question: The ratio of milk and water in a solution is 7 : 4. After adding 8 liters of water, the ratio of milk and water becomes 3 : 2. Find the final amount of water in the solution.

Solution:
Let the initial amount of milk = 7x liters
Let the initial amount of water = 4x liters

According to the question,
7x/(4x + 8) = 3/2
⇒ 2 × 7x = 3 × (4x + 8)
⇒ 14x = 12x + 24
⇒ 14x - 12x = 24
⇒ 2x = 24
⇒ x = 12

∴ Final amount of water = 4x + 8
= 4 × 12 + 8
= 48 + 8 = 56 liters

Question: Tk. 1,000 becomes Tk. 1,200 in 4 years at a certain rate of simple interest. If the rate of interest is increased by 2%, what amount will Tk. 1,000 become in 4 years?

Solution:
Principal, P = 1000
Interest, I = 1,200 - 1,000 = 200
Time, T = 4 years

SI = PRT/100
⇒ R = (SI × 100)/(P × n)
⇒ R = (200 × 100)/(1000 × 4)
⇒ R = 20000/4000
⇒ R = 5

∴ Interest rate, R = 5%

∴ New Interest rate = 5% + 2% = 7%

New interest at 7% for 4 years:
New interest = (1,000 × 7 × 4)/100
= (28,000)/100
= 280 Tk.

New amount = Principal + Interest
= 1,000 + 280
= Tk. 1,280