Multiple choice

Gishaan has Rs. $500$ in a savings account that earns $5\%$ interest per year. The interest is not compounded. How much interest will he earn in $4$ years?

  1. Rs. $100$
  2. Rs. $200$
  3. Rs. $300$
  4. Rs. $400$
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A Correct answer
Explanation

Simple interest is calculated as I = P * R * T / 100. Here, P = 500, R = 5, T = 4. I = (500 * 5 * 4) / 100 = 100.

AI explanation

Using the simple interest formula of Simple Interest equals Principal times Rate times Time divided by 100, we substitute the given values. The interest equals 500 times 5 times 4 divided by 100, which simplifies to Rs. 100. The interest earned in 4 years is Rs. 100.

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