If Seema invests ₹17,650 in an account that yields 8.5% p.a. simple interest, then how much (to nearest ₹) will she have after 5 years ?
Answer & explanation
Correct answer: option 1
Principal (P) = Rs 17650
Time(T) = 5 years
Rate(R) = 8.5% per annum
Total int. for 5 yrs. = 8.5 × 5 = 42.5%
Amount after 5 years = P × 142.5%
= 17650 × 42.5% = 25151.25 = Rs 25151 (nearest)