Multiple choice

A sum of Rs. 8,000 is lent at 5% p.a. simple interest. What will be the amount after 4 years?

  1. Rs. 9600

  2. Rs. 9700

  3. Rs. 9400

  4. Rs. 9500
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A Correct answer
Explanation

SI = P * R * T / 100 = 8000 * 5 * 4 / 100 = 1600. Amount = P + SI = 8000 + 1600 = 9600.

AI explanation

Using the simple interest formula, Simple Interest = (Principal x Rate x Time) / 100, the interest is (8000 x 5 x 4) / 100 = 1600. The total amount after 4 years is the principal plus the interest, which is 8000 + 1600 = 9600. The result is Rs. 9600.

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