What is the simple interest on ₹5000 for 2 years at 5% per annum?
Show answer & explanation
Correct answer: A
Explanation
Given:
Principal = ₹5,000
Interest Rate = 5% per annum
Time = 2 years
According to the formula:
Simple Interest = (Principal × Rate × Time) / 100
Simple Interest = (5,000 × 5 × 2) / 100
= 50,000 / 100
= 500