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.