What will be the simple interest on a principal of Rs. 1600 for 8 years at the rate of 2 percent per annum?
Show answer & explanation
Correct answer: A
Explanation
Given:
Principal = ₹1600
Interest rate = 2% per annum
Time = 8 years
Formula:
Simple interest = (P × R × T) / 100
Simple interest = (1600 × 2 × 8) / 100 = ₹256