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? [2 Marks]

Answer 1

Here, principal (P) = ₹ 1000
Rate of interest (R) = 6%
Time period (T) = 4 years [0.5 Mark]

We know that simple interest,
$SI=\frac{P\times R\times T}{100}$
$\Rightarrow SI=\frac{1000\times 6\times 4}{100}$
$\Rightarrow SI=₹240$
[1 Mark]
Hence, after 4 years,
Total amount = Principal + Interest
= ₹ 1000 + ₹ 240
= ₹ 1240 [0.5 Mark]