Question

Find the simple interest on ₹200 for 5 years at 6% per annum.

• A. ₹20
• B. ₹30
• C. ₹60
• D. ₹20

Answer 1

The correct option is C ₹60

We know,
for a principal P, rate of interest R and time T,
Simple Interest = $\frac{P\times R\times T}{100}$

Here, P = 200, R = 6 and T = 5

Simple Interest = $\frac{200\times 6\times 5}{100}$
= $2\times 6\times 5$
= ₹60