Question

A principle of Rs. 40,000 is deposited in a bank which offers a simple interest at a rate of 10% per year. What is the amount at the end of 2 years?

• A. Rs.48000
• B. Rs.44000
• C. Rs.40000
• D. Rs.48000

Answer 1

The correct option is A

Rs.48000

$SI$ $=$ $\frac{Principal\times time\times rate}{100}$
$=$ $\frac{40000\times 2\times 10}{100}$
$=$ $Rs.8000$

Amount at the end of two years = Principal + SI

= Rs.48000.