Answer :
To find out how much A will receive after one year, given a principal amount of ₹20,000 and an annual interest rate of 10%, we will use the formula for simple interest.
The formula for simple interest is:
[tex]I = P \times R \times T[/tex]
where:
- [tex]I[/tex] is the interest earned,
- [tex]P[/tex] is the principal amount,
- [tex]R[/tex] is the rate of interest (in decimal form),
- [tex]T[/tex] is the time period in years.
Here, [tex]P = 20000[/tex], [tex]R = 10\% = 0.10[/tex], and [tex]T = 1[/tex] year.
Plugging these values into the formula, we get:
[tex]I = 20000 \times 0.10 \times 1 = 2000[/tex]
This means the interest earned after one year is ₹2,000.
To find out the total amount A will receive after one year, we add the interest earned to the principal amount:
[tex]\text{Total Amount} = P + I = 20000 + 2000 = 22000[/tex]
Therefore, A will receive ₹22,000 after one year.
