If Seema invests Rs 17,650 in an account that yields 8.5% p.a. simple interest, then how much (to nearest Rs) will she have after 5 years?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 25,151
Concept used : (P × R × T)/100
Given :
P = Rs. 17650
R = 8.5 %
T = 5 years
Solution :
The interest earned by Seema in 5 years = (17650 × 8.5 × 5)/100 = Rs. 7,501.25
The total money with Seema afer 5 years = 17650 + 7501.25 = 25151.25
The money owned by Seema after 5 years (nearly) = Rs. 25,151.