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Multiple choice

The interest earned on Rs 1600 at the rate of 5\% simple interest per annum for 6 years would be:

  1. 496

  2. 480

  3. 450

  4. 2080

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = Principal × Rate × Time. Here: SI = 1600 × 0.05 × 6 = 1600 × 0.30 = Rs 480. Option D (2080) would be the amount (principal + interest), not just the interest earned.

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