Sahil received ₹ 10,000 as a prize in a poster-making competition. His father promises Class 7

Sahil received ₹ 10,000 as a prize in a poster-making competition. His father promises Class 7

Sahil received ₹ 10,000 as a prize in a poster-making competition. His father promises to pay him 12 per cent interest per year if he does not spend the amount. After 3 years, how much money would Sahil have? Class 7

Answer:

(1) Initial Amount :

Sahil starts with ₹ 10,000 .

(2) Interest Calculation for Each Year :

The interest for the first year is calculated as follows:

Interest for Year 1=12 % of ₹ 10,000

= [latex] \frac{12}{100 \times 10,000} [/latex]

= ₹ 1,200

At the end of Year 1, Sahil's total amount will be:

Total after Year 1

= Initial Amount + Interest for Year 1

= ₹ 10,000 + ₹ 1,200

= ₹ 11,200

(3) Calculating for Year 2:

Interest for Year 2=12 % of ₹ 11,200

= [latex] \frac{12}{100 \times 11,200}[/latex]

= ₹ 1,344

At the end of Year 2, Sahil's total amount will be:

Total after Year 2

= Total after Year 1+ Interest for Year 2

= ₹ 11,200 + ₹1,344

= ₹ 12,544

(4) Calculating for Year 3:

Interest for Year 3=12 % of ₹ 12,544

= [latex] \frac{12}{100 \times 12,544} [/latex]

= ₹ 1,505.28

At the end of Year 3, Sahil's total amount will be:

Total after Year 3

= Total after Year 2 + Interest for Year 3

= ₹ 12,544+₹ 1,505.28

= ₹ 14,049.28

After 3 years, Sahil will have a total of ₹ 14,049.28