Question

Rani deposited AED 12000 for 3 years at the rate of 5 percent per annum. Calculate the simple interest and amount at the end of the 3rd year

Answer 1

the principal and the amount is 1,800 and 13,800 respectively

Explanation:

The computation of the simple interest and amount for the end of the 3rd year is shown below:

Simple interest is

= Principal × rate of interest × time period

= 12,000 × 5% × 3 years

= 1,800

Now the amount is

= 12,000 + 1,800

= 13,800

hence, the principal and the amount is 1,800 and 13,800 respectively