Question

At a simple rate of interest of 4% a sum of Rs.600 in 5 years amounts to

• A. Rs.720
• B. Rs.624
• C. Rs.620
• D. Rs.630

Answer 1

The correct option is A Rs.720

Principal = Rs 600
Time = 5 years
Rate = 4 %
Now, $Interest=\frac{Principal\times Rate\times Time}{100}$
$Interest=\frac{600\times 4\times 5}{100}$
$Interest=120Rs$
$Amount=Principal+Interest=600+120=Rs720$