Question

Find the simple interest (in ₹) on ₹2500 as a sum borrowed at 4% per year rate of interest for 4 years.

• A. 440
• B. 400
• C. 360
• D. 340

Answer 1

Answer:

B. 400

Use the simple interest formula:

$\text{SI}=\frac{P \times R \times T}{100}$

Where:

• (P = 2500)

• (R = 4%)

• (T = 4) years

$\text{SI}=\frac{2500 \times 4 \times 4}{100}$
$=\frac{40000}{100}$
$=400$

So, the simple interest is:

= ₹400