Question

Find the simple interest if P = Rs. 500, R = 2% per six months & T = 2$\frac{1}{2}$ years.

• A. Rs. 20
• B. Rs. 25
• C. Rs. 40
• D. Rs. 50

Answer 1

Answer: (D)

Rs. 50

Given, $P=500$; $R=2\%persixmonths=2\times \frac{12}{6}=4\%p.a.$ and $T=2\frac{1}{2}years=\frac{5}{2}$years.

Hence,

$SI=\frac{PRT}{100}=\frac{500\times 4\times 5}{2\times 100}=Rs.50$