Questions & Answers

Bhuvan made a fixed deposit of Rs. 15,000 in a bank on 1/1/2007 for 219 days under 12% p.a. simple interest. Find out the maturity value.
A. Rs. 15,840
B. Rs. 15,960
C. Rs. 16,080
D. Rs. 16,140

Answer Verified Verified
Hint: Use the formula $I=p\times r\times t$ to find the total interest. The maturity value would be the sum of money deposited + the interest.

Complete step by step answer:
Given, money deposited (invested) = Rs. 15,000 which is the principle.
Number of days = 219.
Rate of simple interest = 12% per annum.
We find the simple interest by the formula:
Simple interest = principal x rate x time
Since the rate of S.I is given per annum, i.e. per year, we convert days into year.
  & \therefore \text{ simple interest =}15000\times \dfrac{12}{100}\times \dfrac{219}{365} \\
 & =Rs.1,080 \\
$\therefore $maturity value = simple interest + principal
= Rs. (1,080 + 15,000)
= Rs. 16,080
Therefore, the answer is option (C) Rs. 16,080.

Note: Since the rate of simple interest is given per annum, make sure to convert days into years.
$S.I.=p\times r\times t$.Also date is just given for the reference,don't get confused because of that.
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