What is the maturity value of Rs.25000 at the end of 2 years at 9.25% Simple Interest?
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A.
Rs.29625
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B.
Rs.30225
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C.
Rs.29250
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D.
Rs.28000
Correct Answer:
A. Rs.29625
Explanation:
To calculate the maturity value, first determine the simple interest earned. Using the formula for simple interest (Principal × Rate × Time / 100), multiply the principal of Rs. 25,000 by the annual interest rate of 9.25% and the duration of 2 years. This calculation (25,000 × 0.0925 × 2) results in an interest amount of Rs. 4,625. Finally, add this interest to the original principal (25,000 + 4,625) to find the total maturity value, which is Rs. 29,625.
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