Question

Aman deposits ₹1,50,000 in a saving bank account bearing 5% interest per annum but 3 months later the bank lowers the interest rate to 4.5%. How much interest will he receive at the end of the first year?
(please give me the solution with the method)

Answer 1

P=150000
Rate =5% P.a. (but only for three months)then
Rate for 3 months =5/4%

So intrest of three months

=prt/100

=
$\frac{150000 \times 5}{4 \times 100}$

=₹1875

Now rate of interest decreased
New rate of interest =4.5%p.a.

So rate of interest for 9 months =4.5x9/12

=3.375%

Interest =150000x3.375/100

=₹5062.5

Total interest he will get =1875+5062. 5

=₹6937.5

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