WBCS.LIVE practice question

What is the simple interest on a principal of Rs 2000 at a rate of 5 percent per annum for 2 years?

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

Answer options

  1. Rs 200
  2. Rs 100
  3. Rs 400
  4. Rs 300

Correct answer and explanation

Correct answer: Rs 200

Explanation: ✅ Correct Answer: A) Rs 200 📚 Explanation: The standard mathematical formula for calculating Simple Interest is (Principal × Rate × Time) ÷ 100. Substituting the explicitly given values, we logically get (2000 × 5 × 2) ÷ 100. This straightforward multiplication and division directly yields Rs 200 as the total simple interest earned.