A man borrowed Rs 8000 from a bank at 8% per annum. Find the amount he hasto pay after 4 ½ years.
Given Principal amount P = Rs 8000
Time period T = 4 ½ years = 9/2 years
Rate of interest R = 8% p.a.
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (8000 × (9/2) × 8)/100
= Rs 2880
Amount = Principal amount + Interest
= Rs 8000 + 2880
= Rs 10880
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