Mathematics for FinanceMTP Dec 23 Series IQuestion 3946 of 507
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Sachin deposited Rs.1,00,000\displaystyle 1,00,000 in his bank for 2\displaystyle 2 years at simple interest of 6%\displaystyle 6\%. How much interest would he earns? How much final value of deposit

Options

ARs.6,000\displaystyle 6,000, Rs.1,06,000\displaystyle 1,06,000
BRs.10,000\displaystyle 10,000, Rs.1,15,000\displaystyle 1,15,000
CRs.11,600\displaystyle 11,600, Rs.1,11,600\displaystyle 1,11,600
DRs.1200\displaystyle 1200, Rs.1,12,000\displaystyle 1,12,000
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Correct Answer

Option dRs.1200\displaystyle 1200, Rs.1,12,000\displaystyle 1,12,000

All Options:

  • ARs.6,000\displaystyle 6,000, Rs.1,06,000\displaystyle 1,06,000
  • BRs.10,000\displaystyle 10,000, Rs.1,15,000\displaystyle 1,15,000
  • CRs.11,600\displaystyle 11,600, Rs.1,11,600\displaystyle 1,11,600
  • DRs.1200\displaystyle 1200, Rs.1,12,000\displaystyle 1,12,000

Detailed Solution & Explanation

Given parameters: * Principal (P\displaystyle P) = Rs. 1,00,000\displaystyle \text{Rs. }1,00,000 * Time (t\displaystyle t) = 2\displaystyle 2 years * Rate of simple interest (r\displaystyle r) = 6%\displaystyle 6\% p.a. The formula for Simple Interest is: SI=P×r×t100SI = \frac{P \times r \times t}{100} Substituting the values: SI=1,00,000×6×2100=12,000SI = \frac{1,00,000 \times 6 \times 2}{100} = 12,000 The final value (Amount, A\displaystyle A) is given by: A=P+SI=1,00,000+12,000=1,12,000A = P + SI = 1,00,000 + 12,000 = 1,12,000 So, the interest earned is Rs. 12,000\displaystyle \text{Rs. }12,000 and the final value is Rs. 1,12,000\displaystyle \text{Rs. }1,12,000. Note that Option D contains a typo where the interest is listed as "Rs. 1200" instead of "Rs. 12,000", but it represents the intended answer of Rs. 12,000\displaystyle \text{Rs. }12,000 interest and Rs. 1,12,000\displaystyle \text{Rs. }1,12,000 amount. Hence, **Option D** is the correct answer.

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