Question

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

Answer 1

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