Multiple choice

Ronald deposited Rs. $2500$ in a saving account at the interest rate of $2\%$ per year. How much simple interest will he earn in $4$ years?

  1. Rs. $100$
  2. Rs. $200$
  3. Rs. $300$
  4. Rs. $400$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest is calculated as (Principal * Rate * Time) / 100. Here, (2500 * 2 * 4) / 100 = 25 * 8 = 200.

AI explanation

Using the simple interest formula, we calculate the interest by multiplying the principal of 2500 by the rate of 2% and the time of 4 years. The equation is SI = (2500 * 2 * 4) / 100. This yields an interest of 200.

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