Question

Amit invests a sum of ₹ 10,000 in a fund giving 10 % p.a rate of interest. Find the amount received by him at the end of 6 years.

• A. ₹ 16,000
• B. ₹ 12,000
• C. ₹ 8,000
• D. ₹ 24,000

Answer 1

The correct option is A ₹ 16,000

Given, time = 6 years.
The sum invested = ₹ 10,000.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R% p.a S.I is given by $\frac{P\times R\times T}{100}$.

So, Interest earned = $\frac{10,000\times 10\times 6}{100}=₹6,000$

We know that,
Principal + Interest = Amount.
Hence, Amount = ₹ (10,000 + 6,000) = ₹ 16,000.

So, the Amount received after 6 years = ₹ 16,000.