Question

Find the simple interest for a sum of ₹ 25,000 invested for 2 years at 8 % per annum.

• A. Principal
• B. Interest rate
• C. Time taken to return loan
• D. Time of compounding

Answer 1

The correct option is A

Principal

We know that S.I. = $\frac{PRT}{100}$

where, S.I. is the simple interest, P is the principal, R is the rate of interest per annum and T is the time(number of years).

Given P = ₹ 25,000; R = 8% and T = 2 years

S.I. = $\frac{P\times R\times T}{100}$

= $\frac{25,000\times 8\times 2}{100}$

= ₹ 4000