Question

Calculate the simple interest on ₹1000 for a period of 5 years at 7% interest per annum.

• A. ₹350
• B. ₹170
• C. ₹1350
• D. ₹107

Answer 1

The correct option is A

₹350

Given: Principal, P = ₹1,000
Rate of interest, R = 7%
Time, T = 5 years

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

$\Rightarrow$ Interest at the end of five years
$=\frac{1,000\times 7\times 5}{100}=₹350$