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

A

Tk. 1380

B

Tk. 1320

C

Tk. 1430

D

Tk. 1560

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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.

 

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Updated: 1 month ago

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