If an amount of ₹80 becomes ₹96 in 2 years in a bank account which gives simple annual interest, then an amount of ₹62,000 will become ________ in the same account after 5 years.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹93,000
Given:
Principal = Rs 80
Amount = Rs 96
Time = 2 years
Formula used:
SI = PRT/100
Where, P = Principal, R = rate and T = time
Calculations:
According to the question;
SI = 96 - 80 = 16
⇒ 16 = (80 × R × 2)/100
⇒ R = 10%
Similarly,
⇒ SI = (62000 × 5 × 10)/100 = 31000
⇒ Amount = P + SI
⇒ Amount = 62000 + 31000 = Rs 93000