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Varun deposited Rs.1,500 in the bank at a rate of interest of 8% per annum. Find the amount that he receive after 2½ years.

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Rs. 1800

Rs.300

Rs.1,600

Rs.500

answer is A.

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Detailed Solution

P = 1,500

T = 2 ½ years = $\frac{5}{2}$ year

R = 8

$Interest, I = \frac{P \times T \times R}{100} = \frac{1, 500 \times 5 \times 8}{2 \times 100}$

= Rs.300

Amount, A = 1,500+300

= Rs.1,800

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