Question

Shrikant deposit 85000 rupees for 21/2year at 7 pcpa in a savings bank.What is the total interest he receive at the end of the period?
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Answer 1

Solution :

Refer to the attachment for the solution :)

To be know :

In these types of questions we have learnt how to find the amount of the total interest.

Additional Information:

There are different types of bank accounts :

1] Current Account

A current account is mainly for traders and those dealing on money on a daily basis.

An account holder can deposit or withdraw money any number of times in a day. The bank issues a passbook for this account and also a cheque book on demand. The bank does not pay any interest on the money in this type of account. Money can also money withdrawn or deposited by cheque.

2] Savings Account

A person can deposit a minimum amount and open a savings account. In some banks, no minimum amount is required for opening an account . The bank pays some interest on the basis of the daily credit balance in the account . There are some restrictions on how often money can be withdrawn from this account . For this account too , bank issues a passbook and , on demand , a cheque book.

3] Reccuring Deposit Account : (RD)

the account holder can decide the amount to be deposited every month in the account the bank gives an interest on the deposit which is more than that paid for the savings account Such an amount is a means of compulsory savings account .

Hence , this account is known as recurring deposit account.

4] Fixed Deposit : (FD)

A depositor deposit a certain amount for a fixed period in the bank this deposit attracts a greater rate of interest then the savings account however this rates at different in the different banks .

Hence, a fixed amount for a fixed period is known as Fixed deposit (FD).

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Answer 2

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Note: Hey mate for solution refer to the attachment. :)

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The amount deposited/borrowed is called Principal. It is denoted by P.

In return the amount is paid by the depositer or lender for using thier money. This amount is called interest. it is denoted by I.

When we interest is calculated every year only on the principal amount it is called as simple interest. It is denoted by S.I

Rate is the amount paid by principal for every hundred rupees deposited or borrowed per year. it is denoted by R.

Time is a duration in years for which the principal is deposited/borrowed it is denoted by T.

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