Question

Duncan has Rs. $500$ in a savings account that earns $5\%$ interest per year. How much interest will he earn in $4$ years?

• A. $100$
• B. $200$
• C. $300$
• D. $400$

Answer 1

The correct option is A $100$

Simple interest, $I=$ $\frac{PRT}{100}$
Where, $P$ is the principal $=$ Rs. $500$
$R$ is the rate $=5\%$
$T$ is the time period $=4$ years
$I=$ $\frac{500\times 5\times 4}{100}$
$I=$ Rs. $100$