New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    An investor deposits ₹50,000 in a bank that offers a

    simple interest rate of 8% per annum. How much interest will the investor earn after 3 years, and what will be the total amount in the account at the end of the period?
    A ₹12,000, total ₹62,000 Correct Answer Incorrect Answer
    B ₹15,000, total ₹65,000 Correct Answer Incorrect Answer
    C ₹10,000, total ₹60,000 Correct Answer Incorrect Answer
    D ₹14,000, total ₹64,000 Correct Answer Incorrect Answer

    Solution

    Calculate the interest earned: Simple Interest (SI) = (Principal × Rate × Time) / 100 SI = (50,000 × 8 × 3) / 100 SI = (1,200,000) / 100 = ₹12,000 Calculate the total amount in the account after 3 years: Total Amount = Principal + Interest Total Amount = ₹50,000 + ₹12,000 = ₹62,000 Answer: a) ₹12,000, total ₹62,000.

    Practice Next