Question

You have deposited $ 1000 in the bank. There is a 7% interest on it every year. How much money will you receive after 5 years?

• A. $ 350
• B. $ 750
• C. $ 1350
• D. $ 1070

Answer 1

The correct option is C $ 1350

Here, principal (P) = $\$1000$
Rate of interest (R) = 7%
Time period (T) = 5 years

Simple interest (SI)
$SI=\frac{P\times R\times T}{100}$
So, by putting values, you get:
$\Rightarrow SI=\frac{1000\times 7\times 5}{100}$
$\Rightarrow SI=\$350$

Hence, after 5 years, the total amount = Principal amount + Interest received = $\$1000$ + $\$350$ = $\$1350$