Multiple choice

Priyanka has Rs. $1,000$ 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. $200$
  2. $300$
  3. $400$
  4. $500$
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A Correct answer
Explanation

Since the interest is simple, use I = PRT. Thus I = 1000 x 0.05 x 4 = 200. The pronoun in the question does not affect the calculation.

AI explanation

To find the simple interest earned over 4 years, use the formula I = (P * R * T) / 100 with the given values. The calculation becomes I = (1000 * 5 * 4) / 100, which simplifies to 20000 / 100. Priyanka will earn Rs. 200 in interest over the 4-year period.

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