Question

In your saving bank account Rs. $1200$ for $3$ days at $2\%$ per annum is deposited. Calculate the interest.

• A. $0.197$
• B. $1.197$
• C. $2.197$
• D. $3.197$

Answer 1

The correct option is A $0.197$

Using the formula,
Saving account interest $=$ Principal or amount in the account $\times$ Number of days $\times$ Daily Interest Rate
At $2\%$daily interest rate $=$ $\frac{2}{365}$
$=$ $\frac{1200\times 3\times 2}{100\times 365}$
$=0.197$