Multiple choice

What would be the simple interest obtained on an amount of Rs 7940 at the rate of 8.75 p.c.p.a. after 4 years?

  1. 2852

  2. 2779

  3. 2592

  4. 2988
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = Principal × Rate × Time. SI = 7940 × 8.75/100 × 4 = 7940 × 0.35 = 2779. The calculation is straightforward: 8.75% of 7940 is 694.75 per year, and for 4 years it is 694.75 × 4 = 2779. This is standard SI formula application.

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