Multiple choice

Lisa has Rs. 5000 in a savings account that earns 10% annually. The interest is not compounded. How much interest will she earn in 4 years?

  1. Rs. 2000

  2. Rs. 3000

  3. Rs. 3500

  4. Rs. 2700

  5. Rs. 2500
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A Correct answer
Explanation

Simple interest is calculated as (Principal * Rate * Time) / 100. Here, (5000 * 10 * 4) / 100 = 2000.

AI explanation

Using the simple interest formula where interest equals principal times rate times time divided by 100, we substitute the given values. The calculation is 5000 times 10 times 4 divided by 100, which equals 200000 divided by 100. The total interest she will earn in 4 years is Rs. 2000.

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