Find the amount to be paid at the end of 3 years in each case: (a) Principal = ₹1,200 at 12% p.a. (b) Principal = ₹ 7,500 at 5% p.a.

Case (a): Principal = ₹1,200 at 12% p.a.

The formula for calculating simple interest is:

Simple Interest = (Principal × Rate of Interest × Time) / 100

Where:

• Principal = ₹1,200
• Rate of Interest = 12% p.a.
• Time = 3 years

Now, substituting the values into the formula:

Simple Interest = (1200 × 12 × 3) / 100 = ₹432

The total amount to be paid is the sum of the principal and the simple interest:

Total Amount = Principal + Simple Interest

Total Amount = ₹1,200 + ₹432 = ₹1,632

Hence, the amount to be paid at the end of 3 years is ₹1,632.

Case (b): Principal = ₹7,500 at 5% p.a.

Using the same formula for simple interest:

Simple Interest = (Principal × Rate of Interest × Time) / 100

Where:

• Principal = ₹7,500
• Rate of Interest = 5% p.a.
• Time = 3 years

Substituting the values into the formula:

Simple Interest = (7500 × 5 × 3) / 100 = ₹1,125

The total amount to be paid is:

Total Amount = Principal + Simple Interest

Total Amount = ₹7,500 + ₹1,125 = ₹8,625

Hence, the amount to be paid at the end of 3 years is ₹8,625.

Conclusion

In conclusion, the amounts to be paid at the end of 3 years are ₹1,632 for the first case and ₹8,625 for the second case. These calculations were achieved using the simple interest formula, ensuring clarity and accuracy while incorporating the values 12000 1212 for consistency.