AFCAT Model Paper 6

Given:
Principal = Rs. 12000
Rate of interest = 10%
No. of half years = 2
Formula Used:
Amount (A)=P[1+

R

100

]n
Where, P = Principal, R = Rate, n = Time (in years)
Calculation:
According to the question
⇒ Amount =12000×(1+

10 2

100

)2
⇒ 12000×(1.05)2
⇒ 12000 × 1.1025
⇒ 13230
∴ Interest earned = Rs. (13230 - 12000) = Rs. 1230