Question

Shrikant deposited Rs 85,000 for years at 7 p.c.p.a. in a savings bank account. What is the total interest he received at the end of the period?

Answer 1

Here, P = Rs 85000, R = 7 p.c.p.a., T = 2(1/2) years = 2.5 years 

∴ Total interest = (P x R x T)/100

= (85000 x 7 x 2.5)/100

= (85000 x 7 x 25)/(100 x 10)

= 85 x 7 x 25

= Rs. 14875

∴ The total interest received by Shrikant at the end of the period is Rs 14875.