Question

How much interest will you earn if your saving bank account has Rs.$1000000$ for $12$ days at $3\% $ per annum is deposited.
A) $264.38$
B) $364.38$
C) $464.38$
D) $986.30$

Answer 1

Hint: Calculate the interest rate of the one day to find the interest of $12$ days because in question interest rate is given in per annum. So, we have to convert it into an interest rate of one day.

Complete step by step solution:
Given: A amount of money Rs. $1000000$ , time of $12$ days is given and rate of interest $3\% $ per annum is given.
We have to find the amount of interest given by the bank on Rs. $1000000$ for $12$ days at the rate of $3\% $ per annum.
First, to calculate the amount of interest earned we will use the formula of simple interest which is:
Simple interest $ = \dfrac{{P \times R \times T}}{{100}}$
Where, $P$ is the principal amount, $R$ is the rate of interest and $T$ is the time or number of days.
So, to calculate the interest of $12$ days, we have to convert the interest rate per annum to the per day
Rate of interest per annum$ = 3\% $
To convert the rate of interest from per annum to the per day, we will divide the rate of interest per annum by the number of days in a year which is $365$ .
Rate of interest per day $ = \dfrac{{3\% }}{{365}}$
Now, we will calculate the simple interest.
So, substitute the values of Principal amount, rate of interest per day and Time which is the number of days in the formula of simple interest.
Simple interest $ = \dfrac{{1000000 \times 3 \times 12}}{{100 \times 365}}$
Now, calculate it.
$ = {\text{Rs}}{\text{. }}986.30$

Hence, we will earn Rs. $986.30$ as an interest if our savings bank account has Rs. $1000000$ for $12$ days at $3\% $ per annum is deposited.

Therefore Option D is the correct answer.

Note:
We will apply the formula of simple interest here to find the interest amount given to us by the bank. The formula is $S.I = \dfrac{{P \times R \times T}}{{100}}$ . here $P$ is the principal amount and $R$ is the rate of interest and $T$ is the time. If rate of interest given per annum then convert the rate of interest into days or months accordingly or as asked in the question and also sometimes time can be given in the form of years, months or days. Then also we have to convert the time accordingly.