Question

The total amount for a sum of ₹400 for 3 years at simple interest at 5% per annum will be

• A. ₹415
• B. ₹412
• C. ₹460
• D. ₹435

Hint:

To calculate simple interest, remember to use the formula \(I = \frac{P \times R \times T}{100}\), where the result is added to the principal for the total amount.

Answer 1

The Correct Option is C

The formula for simple interest is: \[ \text{Simple Interest} = \frac{P \times R \times T}{100} \] Where: - \(P\) is the principal amount (₹400), - \(R\) is the rate of interest (5%), - \(T\) is the time period (3 years). Substituting the values: \[ \text{Simple Interest} = \frac{400 \times 5 \times 3}{100} = ₹60 \] The total amount is: \[ \text{Total Amount} = P + \text{Simple Interest} = 400 + 60 = ₹460 \] Thus, the correct answer is ₹460.