Simple Interest – Find maturity amount: Kriya deposits ₹ 65,800 at a simple interest rate of 14% per annum for 4 years. What total amount will she receive at the end of 4 years?
Aptitude
Simple Interest
Difficulty: Easy
Choose an option
Answer
Correct Answer: ₹ 102648
Explanation
Introduction / Context:Find the maturity (amount) under simple interest by adding principal and interest earned over the time period.
Given Data / Assumptions:
- P = ₹ 65,800
- r = 14% per annum
- t = 4 years
Concept / Approach:Interest I = P * r * t. Amount A = P + I.
Step-by-Step Solution:I = 65800 * 0.14 * 4 = 65800 * 0.56 = 36848A = P + I = 65800 + 36848 = 102648
Verification / Alternative check:14% of 65,800 is 9,212 per year; over 4 years → 36,848; add principal to confirm.
Why Other Options Are Wrong:Other totals assume different rates or time.
Common Pitfalls:Using compound interest or rounding yearly interest prematurely.
Final Answer:₹ 102648