Question

Anita deposits Rs 1000 in a savings bank account. The bank pays interest at the rate of 5% per annum. What amount can Anita get after one year?

Answer 1

Principal amount (P) = Rs 1000
Time period (T) = 1 year
Rate of interest (R) = 5% p.a.

Interest = $\frac{P\times R\times T}{100}=\frac{1000\times 5\times 1}{100}$ = Rs 50

Total amount paid after 1 year = Principal amount + Interest = Rs 1000 + Rs 50
= Rs 1050