Multiple choice

Mr. K deposited some amount in a bank for $7.5$ years at the rate of $6$% p.a. simple interest. Mr. K received $Rs. 1,01,500$ at the end of the term. Compute the initial deposit of Mr. K.

  1. $Rs. 70,000$
  2. $Rs. 7,000$
  3. $Rs. 60,000$
  4. $Rs. 80,000$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

SI = P * R * T / 100. Amount = P + SI = P(1 + RT/100). 101500 = P(1 + 6 * 7.5 / 100) = P(1 + 0.45) = 1.45P. P = 101500 / 1.45 = 70000.

AI explanation

Using the simple interest formula for total amount, A = P + (P * R * T) / 100, we substitute the known values to get 101500 = P + (P * 6 * 7.5) / 100. This simplifies to 101500 = P + 0.45P, meaning 101500 = 1.45P. Solving for P gives 101500 / 1.45 = Rs. 70,000 as the initial deposit.

Keep practicing — related questions