Multiple choice

The bank offers senior citizens intrest at the rate $9\%$ p.a compounded yearly on a fixed deposit. What interest will be received at the end of $5$ years if Rs.$10,000$ are deposited.Calculate by the method of simple interest.

  1. $5386.23$
  2. $5500.23$
  3. $6523.65$
  4. $4367.78$
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A Correct answer
AI explanation

First calculate the final amount using the compound interest formula A = 10000(1 + 0.09)^5, which evaluates to 15386.23. To find the interest received, subtract the original principal from this final amount. Subtracting 10000 from 15386.23 gives the interest as 5386.23.

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