Question

Mr. K deposited some amount in a bank for $7.5$ years at the rate of $6\%$ p.a. simple interest. Mr. K received Rs. $1,01,500$ at the end of the term. Compute initial deposit of Mr. K.

• A. Rs. $70,000$
• B. Rs. $7,000$
• C. Rs. $60,000$
• D. Rs. $80,000$

Answer 1

The correct option is A Rs. $70,000$

$A=P(1+it)$
$1,01,500=(1+\frac{6}{100}\times \frac{15}{2})$
$=Rs.70,000$