Question 29 of 45intermediate🔧 ApplyMCQ2 marks

Jasmine invests amount 'p' for 4 years at an interest of 6% p.a. Which of the following expression(s) describe the total amount she will get after 4 years when compounding is not done?

Exercise: Figure it Out (Section 4) | Q: 4 | (Page Page 24)
For More Understanding

Explanation

For simple interest (without compounding), the formula is: Amount = Principal + Interest = p + (p × r × t). Here, r = 6% = 0.06 and t = 4 years. So Amount = p + (p × 0.06×40.06 \times 4). Option (vii) correctly represents this.

Solution Steps

  1. Simple interest formula: A = P + (P × r × t)

  2. r = 6% = 0.06

  3. t = 4 years

  4. A = p + (p × 0.06×40.06 \times 4)

  5. Option (vii) is correct

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