Mr Ram invests an amount of ₹12,200 at the rate of 2% per annum for 4 years to obtain a simple interest. Later he invests the principal amount as well as the amount obtained as simple interest for another 4 years at the same rate of interest. What amount of simple interest will he get at the end of the last 4 years?

Correct option is C

Given:

Principal (P) = ₹12,200
Rate (R) = 2% per annum
Time (T₁) = 4 years

Formula Used:

Simple Interest (SI) = $$\frac{P \times R \times T}{100}$$​

Solution:
First 4 years:

​$$\text{SI}_1 = \frac{12200 \times 2 \times 4}{100} = \frac{97600}{100} = ₹976$$​​

New principal for next 4 years = ₹12200 + ₹976 = ₹13176

​$$\text{SI}_2 = \frac{13176 \times 2 \times 4}{100} = \frac{105408}{100} = ₹1054.08$$​