To calculate 7% interest on 1 lakh, you can use the following formula for simple interest:

Interest=Principal×Rate\text{Interest} = \text{Principal} \times \text{Rate}Interest=Principal×Rate

Where:

  • Principal = 1,00,000 (1 lakh)
  • Rate = 7% (which is 0.07 in decimal form)

Now, applying the formula:

Interest=1,00,000×0.07\text{Interest} = 1,00,000 \times 0.07Interest=1,00,000×0.07

Interest=7,000\text{Interest} = 7,000Interest=7,000

So, 7% interest on 1 lakh is 7,000.