What will be the interest on a sum of Rs. 40,000 invested at 4% per annum at simple interest for 2 years?
1. Rs. 2,200
2. Rs. 3,200
3. Rs. 4,200
4. Rs. 5,200
5. None of these
What will be the interest on a sum of Rs. 40,000 invested at 4% per annum at simple interest for 2 years?
1. Rs. 2,200
2. Rs. 3,200
3. Rs. 4,200
4. Rs. 5,200
5. None of these
1. Rs. 2,200
2. Rs. 3,200
3. Rs. 4,200
4. Rs. 5,200
5. None of these
Correct Answer – Option 2 : Rs. 3,200
Given:
Principal = Rs. 40,000
Time = 2 years
Rate = 4% per annum
Formula used:
SI = (P × R × T)/100
Where,
SI = Simple interest
R = Rate
T = Time
Calculations:
SI = (P × R × T)/100
⇒ SI = (40,000 × 4 × 2)/100
⇒ SI = 3,200
∴ The simple interest after 2 years is Rs. 3,200