Question

A man took a loan of Rs. 700 at the rate of 5% per annum for 4 years. Find the simple interest obtained on it?
1. Rs. 120
2. Rs. 150
3. Rs. 210
4. Rs. 140

Answer 1

Correct Answer - Option 4 : Rs. 140

Given:

Principal (P) = Rs.700

Rate (R) = 5%

Time (T) = 4 years.

Formula Used:

S.I. = (P × R × T)/100

Where,

S.I. → Simple Interest

P → Principal

R → Rate 

T → Time 

Calculations:

According to the question,

S.I. = (700 × 5 × 4)/100

⇒ S.I. = 7 × 20 = Rs. 140

∴ The Simple Interest is Rs. 140.