Multiple choice

Simple interest on $Rs.1000$ for $2$ years at the rate of $5%$ per annum is:

  1. $Rs.100$
  2. $Rs.120$
  3. $Rs.140$
  4. $Rs.80$
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A Correct answer
Explanation

Simple Interest = (P * R * T) / 100 = (1000 * 5 * 2) / 100 = 100.

AI explanation

Using the simple interest formula of Principal multiplied by Rate multiplied by Time divided by 100, we substitute the given values. The calculation becomes 1000 multiplied by 5 multiplied by 2, which equals 10000, and dividing this by 100 gives an interest of Rs. 100.

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