Question

What will be the interest if Shristi takes Rs. 5800 from his friend at 18% per annum on simple interest for 5 years?
1. Rs 5100
2. Rs 5220
3. Rs 5300
4. Rs 5400

Answer 1

Correct Answer - Option 2 : Rs 5220

Given 

Principal = Rs 5800

Rate of Interest = 18% 

Time = 5 years 

Formula Used 

Simple Interest = (Principal × Time × Rate)/100

Calculation

let the interest will be paid by shristi after 5 years be x 

⇒ x = (5800 × 18 × 5)/100

⇒ x = 58 × 90 = 5220

∴ The interest will be paid by shristi is Rs 5220