Question

Find the simple interest (in ₹) on &2500 as a sum borrowed at 4% per year rate of interest for 5 years.

• A. 460
• B. 440
• C. 540
• D. 500

Answer 1

Answer:

D. 500

Use the Simple Interest formula:

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

Given:

• Principal (P = ₹2500)

• Rate (R = 4%) per year

• Time (T = 5) years

  
  $\text{SI} = \frac{2500 \times 4 \times 5}{100}$
  $= \frac{50000}{100}$
  $= 500$

Simple Interest = ₹500