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
The correct answer is Option (3) → ₹3600
Simple interest is \(\frac{P\times R\times T}{100}\), with the time in years, so 2 years 6 months is taken as 2.5 years. The question asks for the amount, which is the sum plus the interest.
Interest \(=\frac{3200\times5\times2.5}{100}=400\)
Amount \(=3200+400=3600\), that is, ₹3600