Answered

If someone deposits Rs. 10000 in a bank for 4 years at a rate of simple interest of [tex][tex]$10\%$[/tex][/tex] per annum, and has to pay [tex]$5\%$[/tex] of the interest as income tax:

a) Find the simple interest for 4 years.



Answer :

GinnyAnswer
Sure, let's go through the steps needed to find the simple interest over 4 years.

Given:
- Principal ([tex]\( P \)[/tex]) = RS. 0000. It seems there might be a mistake here, so let’s assume the principal is Rs. 10000 for calculation.
- Rate of interest ([tex]\( R \)[/tex]) = 10% per annum.
- Time ([tex]\( T \)[/tex]) = 4 years.

The formula to calculate simple interest is:

[tex]\[ \text{Simple Interest (SI)} = \frac{P \times R \times T}{100} \][/tex]

Plugging in the given values:

[tex]\[ \text{SI} = \frac{10000 \times 10 \times 4}{100} \][/tex]

[tex]\[ \text{SI} = \frac{400000}{100} \][/tex]

[tex]\[ \text{SI} = 4000 \][/tex]

Thus, the simple interest for 4 years is Rs. 4000.