Question

You have deposited ₹ 1000 in the bank. There is a 6% interest on it every year. How much money will you have after 4 years?

• A. ₹ 1200
• B. ₹ 1240
• C. ₹ 1260
• D. ₹ 1280

Answer 1

The correct option is B ₹ 1240

Here, principal (P) = ₹ 1000
Rate of interest (R) = 6%
Time period (T) = 4 years

We know that simple interest,
$SI=\frac{P\times R\times T}{100}$
$\Rightarrow SI=\frac{1000\times 6\times 4}{100}$
$\Rightarrow SI=₹240$

Hence, after 4 years,
Total amount = Principal + Interest
= ₹ 1000 + ₹ 240
= ₹ 1240