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Question : If an amount of Rs. 80 becomes Rs. 96 in 2 years in a bank account which gives simple annual interest, then an amount of Rs. 62,000 will become ________ in the same account after 5 years.

Option 1: Rs. 88,200

Option 2: Rs. 84,600

Option 3: Rs. 82,400

Option 4: Rs. 93,000


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Rs. 93,000


Solution : The formula for simple interest is $SI = \frac{PRT}{100}$ where SI is the interest, P is the principal amount, R is the rate of interest and T is the time.
SI = 96 – 80 = 16
⇒ $16 = \frac{80R×2}{100}$
⇒ R = 10%
Now, we want to find out how much an amount of Rs. 62,000 will become in the same account after 5 years. The interest for 5 years would be:
⇒ $SI = \frac{62000×10×5}{100}$ Rs. 31000
So, the total amount after 5 years would be the principal plus the interest, which is Rs. 62,000 + Rs. 31,000 = Rs. 93,000. Therefore, an amount of Rs. 62,000 will become Rs. 93,000 in the same account after 5 years.
Hence, the correct answer is Rs. 93,000.

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