Question

Find the amount to be paid after 5 years for a principal amount of ₹300 at 2% per annum simple interest.

• A. 310
• B. 320
• C. 330
• D. 350

Answer 1

The correct option is C 330

The amount to be paid on simple interest is given by
A = P(1 + TR) where,
P = Principal
T = Time period of deposit
R = Rate of interest(decimal form)

$R=2\%=\frac{2}{100}=0.02$

$A=300(1+5\times 0.02)=300(1+0.1)=300\left(1.1\right)=330$

Therefore, the amount to be paid after 5 years is ₹330