Question

Anita deposits Rs 1000 in a savings bank account. The bank pays interest at the rate of 5% per annum. What amount can Anita get after one year?

Answer 1

Given Principal amount P = Rs 1000

Time period T = 1 year

Rate of interest R = 5% p.a.

We know that simple interest = (P × T × R)/100

On substituting these values in above equation we get

SI = (1000 × 1 × 5)/100

= Rs 50

Total amount paid after 1 year = Principal amount + Interest

= Rs 1000 + Rs 50

= Rs 1050