Question

The bank offers senior citizens intrest at the rate $9\%$ p.a compounded yearly on a fixed deposit. What interest will be received at the end of $5$ years if Rs.$10,000$ are deposited. Calculate by the method of simple interest.

• A. $5386.23$
• B. $5500.23$
• C. $6523.65$
• D. $4367.78$

Answer 1

The correct option is A $5386.23$

$P=10000,R=9,T=5$ yrs

Interest in $1$st year$=\frac{P\times R\times T}{100}$

$=\frac{10000\times 9\times 1}{100}$

$=900$

$P^{\prime }=(900+10000)$

Interest in $2$nd year$=\frac{10900\times 9\times 1}{100}=981$

Interest in $3$rd year$=\frac{11881\times 9\times 1}{100}$

$=1069.29$

Interest in $4$th year$=\frac{12950.29\times 9\times 1}{100}$

$=1165.5261$

Interest in $5$th year$=\frac{14115.81\times 9\times 1}{100}$

$=1270.42$

Total interest$=900+981+1069.29+1165.52+1270.42$

$=5386.23$