What is the 7% interest for 1 lakh?

General
1

What is the 7% interest for 1 lakh? with highest rates

2

Hi,

When money is invested you get an interest on that amount of investment, by offering “7% interest for ₹1 lakh”, it usually means you’ll earn 7% of ₹1,00,000 as interest in one year.
So, 7% of ₹1,00,000 = ₹7,000 per year.

  • If it’s simple interest, you’ll get ₹7,000 every year on the same ₹1 lakh.

  • If it’s compound interest, the interest also earns interest, so the total amount grows a bit faster over time.

Example: In a year, ₹1,00,000 at 7% becomes ₹1,07,000. In 2 years with annual compounding, it becomes about ₹1,14,490 (not just ₹1,14,000). So, 7% on 1 lakh means your money earns ₹7,000 per year at that rate.