Question

Rs. 1,800, invested for 5 years at 8% simple interest per annum, will earn an interest of Rs. _____.
1. 720
2. 750
3. 630
4. 675

Answer 1

Correct Answer - Option 1 : 720

Given:

Principal = Rs. 1800

Time = 5 years

Rate of interest = 8%

Formula used:

Simple Interest = (Principal × time × rate)/100

Calculation:

Simple Interest earned

⇒ (1800 × 5 × 8)/100

⇒ 720

∴ The per annum interest is Rs. 720.