Question

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

• A. ₹350
• B. ₹70
• 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

We know that simple interest,
$SI=\frac{P\times R\times T}{100}$
$\Rightarrow SI=\frac{1000\times 7\times 5}{100}$
$\Rightarrow SI=₹350$

Hence, after 5 years, the total amount = Principal + Interest = ₹1000 + ₹350 = ₹1350