Correct Answer - Option 1 : Rs. 200

**Given:**

Principal = Rs 2000

Time = 2 years

Rate of interest = 5%

**Concept used:**

Simple interest = PRT/100

P → Principal; R → rate of interest; T → time

**Calculation:**

Simple interest = 2000 × 2 × 5/100 = Rs 200

**∴ Simple interest is Rs 200.**