Multiple choice

Swara deposited Rs. 20,000 in a bank for 5 years at the rate 7 p.c.p.c. How much interest will she get?

  1. Rs. 5,000

  2. Rs, 700

  3. Rs. 7,000

  4. Rs. 500
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest is calculated as (Principal * Rate * Time) / 100. Here, (20000 * 7 * 5) / 100 = 200 * 35 = 7000.

AI explanation

Using the simple interest formula, Interest equals Principal multiplied by Rate multiplied by Time divided by 100. Swara deposited Rs. 20,000 at 7% for 5 years, so the calculation is 20000 multiplied by 7 multiplied by 5, all divided by 100. The numerator becomes 700,000. Dividing by 100 gives the total interest of Rs. 7,000.

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