Question

If 400 dollars is deposited in a bank account for 4 years at 8% per annum . Calculate interest using simple interest formula.

• A. $128$
• B. $1290$
• C. $1100$
• D. None of the above

Answer 1

The correct option is A $128$

$\Rightarrow$ $P=\$400,T=4years$ and $R=8\%$

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

$\Rightarrow$ $S.I.=\frac{400\times 8\times 4}{100}$

$\Rightarrow$ $S.I.=\frac{12800}{100}=\$128$

$\therefore$ Interest is $\$128$.