Multiple choice

If you borrow Rs. $620$ for four years at an interest rate of $2\%$, how much interest will you pay?

  1. $490.6$
  2. $409.6$
  3. $4900.6$
  4. $49.6$
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D Correct answer
Explanation

Simple Interest = P*R*T/100 = 620 * 2 * 4 / 100 = 620 * 8 / 100 = 4960 / 100 = 49.6.

AI explanation

Using the simple interest formula, we multiply the principal of 620 by the rate of 2% and the time of 4 years. The equation becomes SI = (620 * 2 * 4) / 100. This results in an interest payment of 49.6.

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