Unit-14 Commercial Mathematics

In this unit you will learn about profit and loss, various taxes, shares and debentures.

Suppose some of your bill of Rs.1500 is due from 5 years at a simple interest 5% per annum. Then what amount will you have to deposit now?

Answer

P = Rs.1500

t = 5 years

r = 5% = 0.05

Amount after 5 years = P(1 + rt)

= 1500(1 + 0.05 × 5)

= Rs.1875.