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A man invested Rs. 9600 to a post office...

A man invested Rs. 9600 to a post office scheme at 12.5% interest per annum at simple interest. But for a certain reason, he withdraws the whole money after 9 months. What total interest did he get at the time of withdraw?

A

652

B

756

C

900

D

936

Text Solution

AI Generated Solution

The correct Answer is:
To find the total interest earned by the man who invested Rs. 9600 at a simple interest rate of 12.5% per annum for 9 months, we can follow these steps: ### Step 1: Identify the formula for Simple Interest The formula for calculating Simple Interest (SI) is: \[ \text{SI} = \frac{P \times R \times T}{100} \] where: - \( P \) = Principal amount (initial investment) - \( R \) = Rate of interest per annum - \( T \) = Time in years ### Step 2: Convert the time from months to years Since the time given is in months, we need to convert it to years. - Given time = 9 months - To convert months to years, we divide by 12: \[ T = \frac{9}{12} = \frac{3}{4} \text{ years} = 0.75 \text{ years} \] ### Step 3: Substitute the values into the formula Now, we can substitute the values into the formula: - \( P = 9600 \) - \( R = 12.5 \) - \( T = 0.75 \) Substituting these values: \[ \text{SI} = \frac{9600 \times 12.5 \times 0.75}{100} \] ### Step 4: Calculate the interest Now, we perform the calculations step by step: 1. Calculate \( 9600 \times 12.5 = 120000 \) 2. Now multiply by \( 0.75 \): \[ 120000 \times 0.75 = 90000 \] 3. Finally, divide by 100: \[ \text{SI} = \frac{90000}{100} = 900 \] ### Conclusion The total interest earned by the man at the time of withdrawal is **Rs. 900**.
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