Question

A sum of Rs 400 is lent at the rate of 5% per annum. Find the interest at the end of 2 years.

Answer 1

Given Principal amount P = Rs 400

Time period T = 2 years

Rate of interest R = 5% p.a.

We know that simple interest = (P × T × R)/100

On substituting these values in above equation we get

SI = (400 × 2 × 5)/100

= Rs 40