Question

2. A man borrow
man borrowed Rs 400 from his friend. At 5% simple rate of interest per
annum, what will amount after 2 years ? (Navodya Exam.)
(1) Rs 405 (2) Rs 415 (3) Rs 420 (4) Rs 440​

Answer 1

Answer:

4) Rs. 440

Step-by-step explanation:

Principal amount = 400 (Given)

Rate of interest = 5% (Given)

Time = 2 years (Given)

Simple interest is the straightforward and and easy method to calculate the interest charged on a loan. Simple interest is determined by the multiplication of the daily interest rate by the principal by the number of days that elapse between payments.

The formula to calculate SI is - PRT/100

Thus,

= 400 × 5 × 2 / 100

= 4000/ 100

= 40

Therefore, = 400+40 = 440.

Hence, the amount after two years will be Rs. 440.