Anita deposits Rs 1000 in a savings bank account. The bank pays interest at the rate of 5% per annum. What amount can Anita get after one year?

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1050

1060

1070

1080

answer is A.

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Detailed Solution

Concept-
We use the straightforward interest formula

, where P is the initial principal amount, r denotes the percentage rate of interest, n denotes the length of time in years, and A denotes the amount accrued after time period n. The unknown A is located using the known values as specified in the query.
Here, we must employ a straightforward interest formula. According to the simple interest formula, the amount accrued after time period n is given by if the starting principle amount is P, the rate of interest is r in percentage, and the time period is t in years.

The initial principal amount, which is equal to the $1,000 that Anita deposited, is provided as P=1000, the percentage interest rate, which the bank pays, is given as r=5, and the time period, in years, is given as t=1. Find the value of A, which is the amount Anita will receive after a year. As a result, we apply the above formulas to obtain,

https://lh4.googleusercontent.com/gA0c2zho5rwdvfTvDl-n8jwRzbSc9a9274e2mk7kYV9TUb3br4VAS9eOS1L5CykXg2JBeToxzlJnZNh7JLg0IqMa9a_tnU_BQeG1GfQkWzBYz6cn0kwz-cX5AeMvj4Q5bi0RJpq1i3CM9Ruq3OKItQ

Thus, after a year, the bank will give 1050 rupees.
Alternately, we can first calculate the simple interest I=PTR, where P is the initial deposit amount, T is the time period, and R is the decimal interest rate. The question states that P=1000 Rupees.