Question

You have deposited rs1000 in a bank at 4 1/2% rate of interest per annum,calculate the simple interest he will get after 2 1/2 years.

A. Rs. 350.00
B. Rs. 70.00
C. Rs. 1350.00
D. Rs. 1070.00

Answer 1

The simple interest accrued after 2.5 years on a Rs. 1000 deposit at a 4.5% annual interest rate is Rs. 1.125. None of the provided options exactly matches this amount.

To calculate simple interest, you can use the formula:

`\[ \text{Simple Interest} (SI) = (P \cdot R \cdot T)/(100) \]`

where:

- P is the principal amount (initial deposit),

- R is the rate of interest per annum, and

- T is the time in years.

In this case:

- P = Rs. 1000,

- R = 4.5% = 0.045 (convert percentage to decimal),

- T = 2.5 years (2 years and 6 months, or 2.5 years).

Now, plug these values into the formula:

`\[ SI = (1000 \cdot 0.045 \cdot 2.5)/(100) \]\[ SI = (45 \cdot 2.5)/(100) \]\[ SI = (112.5)/(100) \]\[ SI = Rs. 1.125 \]`

So, the simple interest after 2.5 years is Rs. 1.125.

None of the provided options exactly match this amount. It seems there might be a mistake in the options or the calculation. Please double-check the options or verify the calculations.