WBCS.LIVE practice question

Calculate the simple interest on a principal amount of Rs 5000 at an interest rate of 10 percent per annum for a period of 2 years.

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Rs 500
  2. Rs 1000
  3. Rs 1500
  4. Rs 800

Correct answer and explanation

Correct answer: Rs 1000

Explanation: āœ… Correct Answer: B) Rs 1000 šŸ“š Explanation: The standard mathematical formula for finding Simple Interest is (Principal Ɨ Rate Ɨ Time) Ć· 100. Plugging in the explicitly given numbers, we logically get (5000 Ɨ 10 Ɨ 2) Ć· 100. Performing the straightforward multiplication and division results directly in exactly Rs 1000 as the total simple interest earned.