The simple interest of ₹100 for 4 months at the rate of 5 paise per rupee per month is
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹20
“5 paise per rupee per month” means that every rupee earns 5 paise each month; simple interest is the same every month.
Interest on ₹100 for one month \(=100\times5=500\) paise \(=\) ₹5
Interest for 4 months \(=4\times5=\) ₹20