Correct option is D
Given:
- Principal (P) = ₹5,000
- Rate of Interest (R) = 4% per annum
- Time (T) = 5 years
Formula Used:
Simple Interest (SI) is calculated using the formula:
Solution:
Substitute the given values into the formula:
The simple interest on ₹5,000 at 4% per annum for 5 years is ₹1,000.