If P = ₹2000, R = 5% per annum, T = 5 years
A. Total sum of amount = ₹2200
B. SI = ₹200
C. SI = ₹500
D. Total sum of amount = ₹2500
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → C and D Only
Simple interest is \(\displaystyle \text{SI}=\frac{P\times R\times T}{100}\), and the amount is principal plus interest.
\(\displaystyle \text{SI}=\frac{2000\times5\times5}{100}=500\)
Amount \(=2000+500=2500\)
A. Total sum of amount = ₹2200 Incorrect. The amount is ₹2500; ₹2200 would be the amount after only 2 years.
B. SI = ₹200 Incorrect. ₹200 is the interest for 2 years, not for 5 years.
C. SI = ₹500 Correct. As worked out above, ₹100 a year for 5 years.
D. Total sum of amount = ₹2500 Correct. ₹2000 \(+\) ₹500 \(=\) ₹2500.