If the rate of simple interest in consecutive years is 4% and 5% respectively, then what will be the total amount payable on ₹25,000 in 2 years?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e ₹27,250.
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = Principal, R = Rate, and T = Time
S.I. in 1st year = (25000 × 4 × 1)/100
⇒ Rs.1000
S.I. in 2nd year = (25000 × 5 × 1)/100
⇒ Rs.1250
Amount = 25000 + 1000 + 1250 = Rs.27250