Question

Ram invested ₹1500 in mutual fund at 15% interest rate per year. He will have at the end of 5 years.

• A. ₹1500
• B. ₹2625
• C. ₹2340
• D. ₹2895

Answer 1

The correct option is B ₹2625

Given,
Amount invested by Ram (P) = ₹1500
Interest rate (R) = 15%
Time period (T) = 5 years

We know that,
$\text{Simple Interest},SI=\frac{P\times T\times R}{100}$
$SI=\frac{1500\times 5\times 15}{100}$
$=₹1125$

Hence, after 5 years,
Total amount = Principal + Interest
= ₹1500 + ₹1125
= ₹2625