Question

You tell your mom that you want ₹700 as pocket money every month. She can deposit some money in the bank such that the interest she gets will be equal to the money you need. Her bank offers her interest of 7% per annum.

How much money should she deposit in the bank?

Answer 1

Solution:

Let money Deposited by mom in the bank = Rs x→ (Principal)

You want an interest of Rs 700.→(S.I)

Rate of interest = 7 % per-annually= $\frac{7}{12}$ Monthly→→(R)

Time =1 month= T

Formula for Simple interest (S.I)

$S.I=\frac{P\times R \times T}{100}$

$\frac{x \times 7 \times 1}{12 \times 100}= 700\\\\ x= 8,40,000$

Money that i should deposit in the bank = Rs 8,40,000

Answer 2

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