olton

has

₹64,322

in

a

savings

account.

The

interest

rate

is

11

%

per

year

and

is

not

compounded.

To

the

nearest

paisa,

how

much

will

he

have

in

total

in

8

months?

To find out how much Olton will have in total after 8 months in a savings account with an annual interest rate of 11%, we use the simple interest formula:

\[ \text{Simple Interest (SI)} = P \times r \times t \]

Where:
- \( P \) is the principal amount.
- \( r \) is the annual interest rate (expressed as a decimal).
- \( t \) is the time period in years.

Given:
- \( P = ₹64,322 \)
- \( r = 11\% = 0.11 \)
- \( t = \frac{8}{12} \) years (since 8 months is \(\frac{8}{12}\) of a year or approximately 0.6667 years).

First, we calculate the simple interest:

\[ \text{SI} = ₹64,322 \times 0.11 \times 0.6667 \]

Let's perform the calculation step by step:

\[ \text{SI} = ₹64,322 \times 0.073337 \]
\[ \text{SI} = ₹4,716.19 \]

Next, we add the interest to the principal amount to find the total amount after 8 months:

\[ \text{Total Amount} = P + \text{SI} \]

\[ \text{Total Amount} = ₹64,322 + ₹4,716.19 \]

\[ \text{Total Amount} = ₹69,038.19 \]

Therefore, Olton will have ₹69,038.19 in total after 8 months.

Do you want details or have any questions?

Here are 8 related questions that expand on this information:
1. How much would Olton have after one year with the same interest rate?
2. How would the total amount change if the interest rate were 12% instead of 11%?
3. What is the difference in total amount if the time period were 6 months instead of 8 months?
4. How can you calculate the total interest earned over a different period, such as 15 months?
5. What would be the total amount if the principal were ₹50,000 instead?
6. How does the frequency of interest application affect the total amount in a savings account?
7. What is the formula for compound interest, and how does it differ from simple interest?
8. How can you determine the time required to double the principal amount at a given interest rate using simple interest?

**Tip:** When calculating interest, ensure you accurately convert time periods into years to maintain precision in your calculations.

Learn how to calculate the total amount in a savings account after 8 months with an annual interest rate of 11%. This problem involves applying the simple interest formula to find the interest earned and the total amount accumulated. Suitable for students studying financial mathematics in Grades 9-12.

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