Question

Nikita invests a sum of ₹ 30,000 in a mega fund giving 20 % p.a rate of interest.Find the amount received by him at the end of 2 years.

• A. ₹ 32,000
• B. ₹ 42,000
• C. ₹ 52,000
• D. ₹ 60,000

Answer 1

The correct option is B ₹ 42,000

Given, time = 2 years.
The sum invested = ₹ 30,000.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R% p.a S.I is given by $\frac{P\times R\times T}{100}$.

So, Interest earned = $\frac{30,000\times 20\times 2}{100}=₹12,000$

We know that,
Principal + Interest = Amount.
Hence, Amount = ₹ (30,000 + 12,000) = ₹ 42,000.

So, the amount received after 2 years = ₹ 42,000.