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    Question

    A sum of ₹50,000 is deposited with an annual simple

    interest rate of 40%. Calculate the total amount that will be obtained after a period of 42 months.
    A Rs. 70,000 Correct Answer Incorrect Answer
    B Rs. 1,20,000 Correct Answer Incorrect Answer
    C Rs. 1,00,000 Correct Answer Incorrect Answer
    D Rs. 1,50,000 Correct Answer Incorrect Answer

    Solution

    Simple interest = (sum x rate of interest x time period in months ÷ (100 x 12) So, simple interest earned = 50000 x 40 x 42 ÷ (100 x 12) = Rs. 70,000 So, amount after 42 months = 50000 + 70000 = Rs. 1,20,000 Hence, option b.

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