Question

You deposit ₹4000 in a bank account paying $9\%$ simple interest per year. How much interest you would have earned after 4 years?

• A. 5440
• B. 1440
• C. 440
• D. 1000

Answer 1

The correct option is B 1440

We know the formula for simple interest as

$S.I=\frac{P\times T\times R}{100}$
where,
P = principal
T = time period
R = rate of interest(%)

$S.I=\frac{4000\times 4\times 9}{100}$

$S.I=1440.$

Therefore, the interest earned after 4 years is ₹ 1440.