Question:
A man invests Rs. 10,000 at 5% simple interest per annum. What is the interest earned after 2 years?
A man invests Rs. 10,000 at 5% simple interest per annum. What is the interest earned after 2 years?
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For simple interest, use \frac{P \times R \times T}{100} and verify yearly interest.
Updated On: Aug 11, 2025
- Rs. 1,000
- Rs. 1,200
- Rs. 1,500
- Rs. 2,000
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The Correct Option is A
Solution and Explanation
To determine the interest earned on an investment using simple interest, we use the formula
Simple Interest (SI) = (Principal × Rate × Time) / 100.
Here, the Principal (P) is Rs. 10,000, the Rate (R) is 5% per annum, and the Time (T) is 2 years.
Plugging these values into the formula:
SI = (10,000 × 5 × 2) / 100
Calculate the result:
SI = (100,000) / 100 = Rs. 1,000
Therefore, the interest earned after 2 years is Rs. 1,000.
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