Question

A bank pays 10% rate of interest, interest being calculated half yearly. A sum of Rs 400 is deposited in the bank. The amount at the end of 1 year will be

• A. Rs 440
• B. Rs 439
• C. Rs 441
• D. Rs 442

Answer 1

The correct option is C Rs 441

We know that the simple interest formula is given by

$\text{S.I.}=\frac{P\times R\times T}{100}$

From the given data, $P=400,T=\frac{1}{2},R=10$

Interest for first half of the year will be $=\frac{400\times 1\times 10}{2\times 100}=20$

So, Amount for first half will be $=400+20=\text{Rs.}420$

Now, principal for second half will be $\text{Rs.}420$

Interest for second half will be $=\frac{420\times 1\times 10}{2\times 100}=21$

Amount at the end of one year will be $=420+21=\text{Rs.}441$