Correct Answer - Option 2 : 5500
Given:
Principal = Rs. 5000
Time = 2.5 years
Rate = 4%
Formula used:
Simple interest = (P × R × T)/100
A = P + S.I
Where,
P = Principal, T = Time, R = Rate
S.I = Simple interest, A = Amount
Calculation:
According to the formula, we know that
Simple interest = (P × R × T)/100
⇒ S.I = (5000 × 2.5 × 4)/100
⇒ S.I = 500
Now,
Amount = P + S.I
⇒ Amount = 5000 + 500
⇒ Amount = 5500
∴ The amount is Rs. 5500.
