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Find the simple interest on ₹5,000 as a sum borrowed at 4% per year rate of interest for 5 years.
Question

Find the simple interest on ₹5,000 as a sum borrowed at 4% per year rate of interest for 5 years.

A.

₹ 800

B.

₹ 1,200

C.

₹ 1,300

D.

₹ 1,000

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:

SI=(P×R×T)100SI = \frac{(P × R × T) }{100}​​

Solution:

Substitute the given values into the formula:

SI=(5000×4×5)100 SI=100,000100 SI=1,000SI = \frac{(5000 × 4 × 5) }{ 100} \\\ \\SI =\frac{ 100,000 }{ 100} \\\ \\SI = ₹1,000​​

The simple interest on ₹5,000 at 4% per annum for 5 years is ₹1,000.

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