Raju invested Rs. 4200 on the name of his children in a bank, which offers 18% per annum interest. If it gets matured in 1 yr 4 months. What is the interest that his child gets?
Question
Raju invested Rs. 4200 on the name of his children in a bank, which offers 18% per annum interest. If it gets matured in 1 yr 4 months. What is the interest that his child gets?
Solution
To calculate the interest that Raju's child will receive, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
First, let's convert the time period of 1 year 4 months into a decimal. Since there are 12 months in a year, 4 months is equal to 4/12 = 1/3 of a year.
Next, we can substitute the given values into the formula:
Principal = Rs. 4200 Rate = 18% per annum = 18/100 = 0.18 Time = 1 year + 1/3 year = 4/3 years
Now we can calculate the interest:
Interest = 4200 * 0.18 * 4/3 = 3024
Therefore, the interest that Raju's child will receive is Rs. 3024.
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