If you deposit Rs. 110 in a bank at a simple interest of 12% per year, how…
2025
If you deposit Rs. 110 in a bank at a simple interest of 12% per year, how much money will you have in the bank after 2 years?
Answer: B. 136.4 — ConceptSimple interest grows linearly with time. If P is the principal, r is the annual rate as a decimal, and t is the time in years, then I = P × r × t. The…
- A.
134
- B.
136.4
- C.
26.4
- D.
24
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Show answer & explanation
Correct answer: B
Concept
Simple interest grows linearly with time. If P is the principal, r is the annual rate as a decimal, and t is the time in years, then I = P × r × t.
The final amount is the original principal plus the interest: A = P + I.
Application
Identify the values: P = Rs. 110, r = 12% = 0.12, and t = 2 years.
Calculate the simple interest: I = 110 × 0.12 × 2 = Rs. 26.4.
Add the principal and interest: A = 110 + 26.4 = Rs. 136.4.
Cross-check
The interest per year is Rs. 13.2; over 2 years it is Rs. 26.4, which agrees with the formula calculation.
Result: Rs. 136.4