Question

You have deposited Rs 1000.00 in the bank. The rate of interest is 7% per annum(simple interest). How much money will you have after 5 years?

• A. Rs. 350.00
• B. Rs. 70.00
• C. Rs. 1350.00
• D. Rs. 1070.00

Answer 1

The correct option is C

Rs. 1350.00

As per the question:

The amount deposited (principal) = Rs 1000.00

The rate of interest is 7% per annum.

$SI=\frac{P\times R\times T}{100}$

Where, SI = Simple Interest, P = Principle amount, R = Rate of interest, T = Time period for which the amount is deposited in the bank.

$\therefore SI=\frac{1000\times 7\times 5}{100}=Rs.350.00$

Hence, after 5 years, the total amount of money = Rs. 1000 + 350 = Rs. 1350.00