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
Rate of interest = \(\frac{5}{100}\) × 100 = 5% per month
We know,
Simple interest = \(\frac{ P × R × T }{100}\)
= \(\frac{ 100 × 5 × 4 }{100}\)
= Rs. 20