Question

You deposit ₹ 345 in to a bank account at 7% simple interest per year. How much interest would you earn after 2 years?

• A. ₹ 48.30
• B. ₹ 48.15
• C. ₹ 48.10
• D. ₹ 47.20

Answer 1

The correct option is A ₹ 48.30

Given,
P = ₹ 345
T = 2 years
R = 7% = $\frac{7}{100}$ = 0.07

Simple Interest (I) earned after 2 years is calculated as,
$I=PRT=345\times 0.07\times 2=24.15\times 2=48.30$