PRC-2 · Chapter 5 · Question 1 of 50
Ahmed invests Rs. 20,000 at a simple interest rate of 8% per annum. How much total interest will he accumulate after exactly 2.5 years?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 4,000
Explanation
Using the simple interest formula I = PRT: I = 20,000 * 0.08 * 2.5 = 4,000. He will earn Rs. 4,000 in interest.
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