Question

Ram deposited an amount 6500 rupees in a saving bank. Bank promises to give an interest of 3% p.a compounded annually. What amount will he get at the end of 12 months?

1. Rs. 6695
2. Rs. 6946
3. Rs. 6948
4. Rs. 6957

Answer 1

Correct Answer - Option 1 : Rs. 6695

Given:

Principal = Rs. 6500

Rate of interest = 3% pa

Time period = 12 months

Formula used:

A = P[(1 + r/100)]ⁿ

A = amount

P = principal

r = rate of interest

n = time period

Calculation:

A = P[(1 + r/100)]¹

⇒ 6500[(1 + 3/100)]

⇒ 6500(103/100)

⇒ 65 × 103

⇒ Rs.6695.

⇒ Amount = Rs.6695.

∴ He will get Rs. 6695 at the end of 12 months.