Question

Rohit deposited ₹7000 in a bank at a rate of 7 p.c.p.a. How much money will he get at the end of the year in all?

• A. 4900
• B. 7490
• C. 7090
• D. 490

Answer 1

The correct option is B 7490

Let us suppose that the interest on the principal of ₹7000 is $I$.
Principal $=\left(P\right)=₹7000$
Rate of interest $=\left(R\right)=7$%
For one Year
$\frac{I}{P}=\frac{R}{100}$
$\frac{I}{7000}=\frac{7}{100}$
$I=\frac{7}{100}\times 7000=₹490$
Therefore, Amount = Principal + Interest
= 7000 + 490
= ₹7490
Hence, Rohit will get ₹7490 at the end of the year in all.