Question

A child friendly bank announces a savings scheme for school children. They will give kiddy banks to children. Children have to keep their savings in it and the bank collects all the money once in a year. To encourage children savings, they give 6%interest if the amount exceeds by Rs 10000, and other wise 5%. Find the interest received by a school if they deposit is Rs 9000 for one year.

Answer 1

Amount deposited in the bank for one year is Rs. $9000$, which is less than $10000$

So the rate of interest given by the bank, $r=5$%

Principal amount, $P=9000$

Time, $t=1$ year

Simple interest $=\frac{P\times r\times t}{100}$

$=\frac{9000\times 5\times 1}{100}$

$=90\times 5=Rs.450$