Question

Neena deposits Rs. 11,500 at rate of 7% simple interest per annum. What will be the amount after 3 years?
1. Rs. 16,512
2. Rs. 13,915
3. Rs. 14,250
4. Rs. 17,854

Answer 1

Correct Answer - Option 2 : Rs. 13,915

Given:

P = Rs. 11,500

R = 7%

N = 3

Formula used:

I = P × R × N/ 100

A = P + I

Where, P = Principal amount, R = Rate of interest, N = number of years and I = Simple interest

Calculation:

Here, P = Rs. 11,500, R = 7%, N = 3

⇒ I = 11,500 × 7 × 3/ 100

⇒ I = 115 × 21

⇒ I = Rs. 2415

⇒ A = 2415 + 11500

∴ Amount = Rs. 13,915