Question

Calculate the simple interest if, P = ₹2000 and R= 5% per annum for 3 years.

• A. 200
• B. 300
• C. 400
• D. 500

Answer 1

The correct option is B 300

We know that,
Simple interest I = PTR where,
P = Principal amount
T = Time period of deposit
R = Rate of interest(decimal form)

R = 5% = $\frac{5}{100}$ = 0.05

I = PTR
= 2000 x 3 x 0.05
= 6000 x 0.05
= 300

Therefore, simple interest = ₹300