A sum of ₹3200 is invested on simple interest at 5% p.a. Find the amount received after 2 years 6 months.
Answer & explanation
Correct answer: option 3
Simple interest = \(\frac{ P × R× T }{100}\)
= \(\frac{ 3200 × 5 × 2.5 }{100}\)
= \(\frac{ 3200 × 5 }{40}\)
= 400
Amount = Principal + Simple interest
= 3200 + 400
= 3600
The correct answer is Option (3) → ₹3600