Question

If David invests $\$200$ and gets $9\%$ interest rate anually for 3 years, what will be the final amount that David will receive?

• A. $250
• B. $254
• C. $240
• D. $264

Answer 1

The correct option is B $254

Given:
David has invested = $\$200$
He gets an annual interest rate of $9\%$ from the bank.
The time taken is 3 years.

You know,
Simple Interest $(S.I)=\frac{P\times R\times T}{100}$
where,
$P$ = Prinicpal amount inested
$R$ = Annual rate percentage
$T$ = Time taken

So, by putting the values, you get,
$S.I.=\frac{200\times 9\times 3}{100}$
$\Rightarrow S.I.=\frac{5400}{100}$
$\Rightarrow S.I.=\$54$

∴ Total amount David received from bank $=\$54+\$200=\$254$