A person had deposited rs 2500 in a bank on ist january and withdrew rs 1000 from the bank at the end of 9 months. If the rate of interest is 4% p.A., then the total interest payable to him at the end of the year is:
Answers
Answer:
rs 96
Explanation:
As the interest is not charged on a compound basis so we will calculate the simple interest on the amount present in account of that person at the end of the year.
So, the total interest payable to him at the end of the year is:
Simple Interest = Principal x Interest Rate x Term of the loan
=(2500-1000) * 4/100 * 1
=2400 * 0.04 * 1
=96
Answer:
The Answer is 89.9 i.e 90
Explanation:
If you see the calculation is quite simple
2500*4%=100 and divide it by 12(months)
100/12= 8.3 is per month interest as of 2500
8.3*9=75(74.97) interest for 9 months
1500*4%=60 and divide it by 12(months)
60/12= 5 is per month interest as of 1500
5*3=15 interest for 3 months
The total interest payable to him at the end of the year is:
75+15= 90.