Question

If a sum of 2000 is lent out
at 2% per annum for 10 years under Simple
Interest then the amount is​

Answer 1

Answer:

S.I =p×r×t. A= P+SI

Explanation:

SI =P×R×T

SI=2000×2/100×10 zero will cancel out and then multiply

SI =400

A= P+SI

A=2000+400

A= 2400

Answer 2

Answer:

2400

Explanation:

We have,

Principal = 2000 Rs

Rate if Interest  = 2% per annual

Time = 10 years.

We know that,

$\text{Simple Interest}=\frac{\text{Principle}\times\text{Rate}\times{Time}}{100}\\\;\\=\frac{2000\times2\times10}{100}\\\;\\=20\times2\times10\\\;\\=400\;\;\text{R.s.}$

Now,

Amount  = Interest + Principal

Amount  = 2000 + 400

Amount = 2400 R.s.

Note:- There are two types of interest. First one is Simple Interest and second is Compound interest. Simple Interest is calculated on the total principal over the given time, while compound interest is calculated on principal as well including total interest earned according to type rate i.e. annually , monthly etc.