A sum of Rs. 4000 is lent on simple interestat the rate of 10% per annum. Simple interest for 5 years is how much more than the simple interest for 3 years?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 800.
| Understanding/Application |
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Principal = Rs. 4000 Rate = 10% Simple interest = PRT/100 |
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Difference between interest of 5 years and of 3 years = Simple interest for 2 years = (4000 × 10 × 2)/100 = Rs. 800 |