Question

Find the amount, if Rs. 23,250 is deposited in fixed deposit scheme at simple interest for 4 years at 4% per annum.
1. Rs. 26,970
2. Rs. 26,790
3. Rs. 25,567
4. Rs. 23,678

Answer 1

Correct Answer - Option 1 : Rs. 26,970

Given

Principal = Rs. 23,250

Time = 4 years

Rate = 4% per annum

Formula used

Simple interest = (P × r × t)/100

Where p, r and t are principal, rate and time respectively.

Amount = Principal + Simple interest

Calculation

Simple interest = (23,250 × 4 × 4)/100

⇒ 3720

Amount = 23,250 + 3720

⇒ 26,970

∴ Amount is Rs. 26,970