Question

a man gives rs 40,000 to a farmer at a 5% rate of interest how much interest would the farmer pay him bank after two years

Answer 1

Principal=40,000
Rate=5%
Time=2year
Interest=P*R*T/100
= 40000*5*2/100
=4000

Answer 2

For simple interest,
I=P*R*T
 =40000*5*2/100=4000
Now, total amount=40000+4000
                             =44000