Understanding Compound Interest Using Simple Interest (Rate Compounded Annually)
Lalit deposit...
Question
Lalit deposited ₹30000 in a bank for one year at an interest rate of 7 p.c. p.a. How much interest will she get at the end of the year?
A
₹2100
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B
₹2000
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C
₹1076
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D
₹2106
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Solution
The correct option is A ₹2100 Let us suppose that the interest on the principal of ₹30000 is x. On principal ₹100, the interest is ₹7.
We shall take the ratio of interest to principal, write it in two forms and obtain an equation.