Question

Find the interest on ₹4500 at 5% interest rate deposited in the bank for 2 years.

• A. ₹350
• B. ₹400
• C. ₹450
• D. ₹275

Answer 1

The correct option is C

₹450

Given: Principal, P = ₹4,500
Rate of interest, R = 5%
Time, T = 2 years

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

$\Rightarrow \text{Interest at the end of two years,}=\frac{4,500\times 5\times 2}{100}=₹450$