Question

Find the simple interest (in ₹) on ₹2500 as a sum borrowed at 7% per year rate of interest for 5 years.

• A. 815
• B. 875
• C. 915
• D. 835

Answer 1

Answer:

B. 875

Using the Simple Interest formula:

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

Given:

• Principal (P = ₹2500)

• Rate (R = 7%)

• Time (T = 5) years

$SI=\frac{2500\times7\times5}{100}$

$SI=\frac{87500}{100}=875$

Simple Interest = ₹875