Question

You deposit Rs. 345 in a bank account which pays 7% simple interest per year. How much interest would you earn after 5 years?

• A. Rs. 120.75
• B. Rs. 121.75
• C. Rs. 110.75
• D. Rs. 100.75

Answer 1

The correct option is A

Rs. 120.75

First find 7% annual simple interest
$S.I=\frac{P\times T\times R}{100}$
$S.I=\frac{345\times 1\times 7}{100}$
$S.I=24.15$
So, the interest earned after 5 years
$=$$5\times 24.15$
$=$ $Rs.$ $120.75$