Question

Rahi deposited Rs. 600 in a bank that promised 8% simple interest per annum. If Rahi kept the money with the bank for 5 years, she will earn an interest of?

• A. Rs. 480
• B. Rs. 240
• C. Rs. 200
• D. Rs. 280

Answer 1

Answer:

B. Rs. 240

Let P = principal, R = rate of interest and N = time period

Given,

P = Rs.600 , R = 8% per annum ,  N = 5 years

Simple Interest $=\frac{PNR}{100}$

∴ Simple Interest $=\frac{(600\times{8}\times{5})}{100}=Rs. 240$