Multiple choice

At a simple rate of interest of 4% a sum of Rs.600 in 5 years amounts to

  1. Rs.720

  2. Rs.624

  3. Rs.620

  4. Rs.630
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A Correct answer
Explanation

Simple Interest = (P * R * T) / 100 = (600 * 4 * 5) / 100 = 120. Amount = Principal + Interest = 600 + 120 = 720.

AI explanation

First, calculate the simple interest using the formula SI equals P times R times T divided by 100, which is 600 times 4 times 5 divided by 100, yielding Rs. 120. Add this interest to the principal to find the total amount, resulting in 600 + 120. The total amount is Rs. 720.

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