Multiple choice

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

Simple interest = P * R * T / 100 = 500 * 5 * 4 / 100 = 100.

AI explanation

Using the simple interest formula of principal multiplied by rate multiplied by time divided by 100, the calculation is Rs. 500 multiplied by 5 multiplied by 4, which equals 10000. Dividing 10000 by 100 gives the interest of Rs. 100. The result is 100.

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