Question

Find the simple interest (in ₹) on ₹4000 as a sum borrowed at 4% per year rate of interest for 3 years.

• A. 420
• B. 520
• C. 440
• D. 480

Answer 1

Answer:

D. 480

Use the Simple Interest formula:

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

Where:
P = 4000
R = 4% per year
T = 3 years

$\text{SI} = \frac{4000 \times 4 \times 3}{100}$
$= \frac{48000}{100}$
$= 480$

Simple Interest = ₹480