With 7 percent annual interest rate on 1 lakh, you would earn a simple interest of 700 rupees per year or Rs. 58.33 per month. When the 7 percentage interest for 1 lakh compounded for 1 year, you will earn Rs. 7312.01 on compounding daily, Rs. 7,308.47 on weekly, Rs. 7,299.09 on monthly and Rs. 7,292.47 on compounding quarterly as interest.