Question
A sum of ₹50,000 is deposited with an annual simple
interest rate of 40%. Calculate the total amount that will be obtained after a period of 42 months.Solution
Simple interest = (sum x rate of interest x time period in months ÷ (100 x 12) So, simple interest earned = 50000 x 40 x 42 ÷ (100 x 12) = Rs. 70,000 So, amount after 42 months = 50000 + 70000 = Rs. 1,20,000 Hence, option b.
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