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
• B. ₹2000
• C. ₹1076
• D. ₹2106

Answer 1

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.

$\frac{x}{30000}=\frac{7}{100}$

$x=\frac{7}{100}\times 30000=2100$