Question

If you borrow Rs. $620$ for four years at an interest rate of $2\%$, how much interest will you pay?

• A. $490.6$
• B. $409.6$
• C. $4900.6$
• D. $49.6$

Answer 1

The correct option is D $49.6$

Simple interest, $I=$ $\frac{PRT}{100}$
Where, $P$ is the principal $=$ Rs. $620$
$R$ is the rate $=2\%$
$T$ is the time period $4$ years
$I=$ $\frac{620\times 2\times 4}{100}$
$I=$ Rs. $49.6$