Multiple choice

The simple interest on Rs. 400 for 8 months at 5 paise per rupee per month is

  1. Rs.120

  2. Rs.160

  3. Rs. 200

  4. Rs. 550
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest is calculated as Principal * Rate * Time. Here, Principal = 400, Rate = 5 paise per rupee per month (which is 5% per month), and Time = 8 months. Interest = 400 * 0.05 * 8 = 160.

AI explanation

An interest rate of 5 paise per rupee per month equals a monthly rate of 5 percent. Using the Simple Interest formula for Rs. 400 over 8 months, the interest is 400 times 5 times 8 divided by 100. This calculation gives a total simple interest of Rs. 160.

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