Question

Vinita deposited ₹15000 in a bank for one year at an interest rate of 7 p.c. p.a. How much interest will she get at the end of the year?

• A. ₹1050
• B. ₹2000
• C. ₹1076
• D. ₹2106

Answer 1

The correct option is A ₹1050

Let us suppose that the interest on the principal of ₹15000 is x. On principal ₹100, the interest is ₹7.
We shall take the ratio of interest to principal, write it in two forms and obtain an equation.

$\frac{x}{15000}=\frac{7}{100}$

$x=\frac{7}{100}\times 15000=1050$