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In Business Mathematics, the amount accumulated after a specified period is generally calculated using the principles of interest. The accumulated amount represents the total value of an investment or sum of money at the end of the given period. It consists of the original principal together with the interest earned during the period. Since the question asks for the amount accumulated after five years, the exact numerical answer depends on the principal amount, rate of interest, and method of compounding. Therefore, the appropriate mathematical formula must be selected according to the information provided. If interest is calculated by the simple interest method, the accumulated amount is obtained by adding the simple interest to the principal. Simple interest is calculated by the formula I = PRT/100 where P represents the principal, R represents the annual rate of interest expressed as a percentage, and T represents the time in years. Since the period is five years, T = 5. Therefore, I = P × R × 5/100 The amount accumulated after five years is A = P + I or, A = P(1 + RT/100) Substituting T = 5 gives A = P(1 + 5R/100) Thus, when simple interest is used, the amount accumulated after five years is equal to the principal multiplied by one plus five times the annual rate divided by 100. For example, suppose an amount of ₹20,000 is invested at a simple interest rate of 8% per annum for five years. The interest earned will be I = 20,000 × 8 × _____ _____ _____ _______ _____ _________.
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