A child friendly bank announces a savings scheme for school children. They will give kiddy banks to children. Children have to keep their savings in it and the bank collects all the money once in a year. To encourage children savings, they give 6% interest if the amount exceeds by Rs. 10000 and other wise 5%. Find the interest received by a school if the deposit is Rs. 9000 for one year.

Given: Bank gives 6% interest if the amount exceeds by Rs. 10000 and other wise 5%.

To find: Here we have to find the interest received by a school if the deposit is Rs. 9000 for one year.

Solution:

Amount deposited by the school for one year is Rs. 9000, which is less than 10000. So, the rate of interest given by the bank, R = 5%.

Principal amount (P) = Rs 9000

Rate of interest (R) = 5% p.a

Time (T) = 1 year

Simple interest (S.I) = $\frac{P\ \times\ R\ \times\ T}{100}$

S.I = $\frac{9000 \times\ 1 \times\ 5}{100}

S.I = Rs. 450

So, interest received by a school is Rs. 450.

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Updated on: 10-Oct-2022

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