Question

A sum of ₹5,000 is lent at 8% per annum for 2 years at simple interest. Find the interest earned at the end of 2 years?

• A. ₹722
• B. ₹894
• C. ₹800
• D. ₹945

Answer 1

The correct option is C ₹800

Given:
Principal, P = ₹5,000
Rate of interest, R = 8%
Time, T = 2 years

We know that simple interest $=\frac{P\times R\times T}{100}$

$\Rightarrow$ Interest earned at the end of two years $=\frac{5,000\times 8\times 2}{100}=₹800$