The simple interest on Rs.550 at the rate of `5%` p.a. for 2 yeaRs. is ___________.

Options

A. Rs. 55
B. Rs. 27.50
C. Rs. 125
D. Rs. 12.50

Explanation

To find the simple interest on Rs. 550 at the rate of 5% per annum for 2 years, we can use the formula for simple interest:

**Simple Interest (SI) = (P × R × T) / 100**

Where:
- P = Principal amount (the initial amount of money)
- R = Rate of interest per annum
- T = Time (in years)

### Step-by-Step Solution:

1. **Identify the values:**
- Principal (P) = Rs. 550
- Rate of interest (R) = 5%
- Time (T) = 2 years

2. **Substitute the values into the formula:**
\[ SI = \frac{P \times R \times T}{100} \]
\[ SI = \frac{550 \times 5 \times 2}{100} \]

3. **Calculate the multiplication in the numerator:**
\[ 550 \times 5 = 2750 \]
\[ 2750 \times 2 = 5500 \]

4. **Now divide by 100:**
\[ SI = \frac{5500}{100} = 55 \]

5. **Final Answer:**
The simple interest on Rs. 550 at the rate of 5% per annum for 2 years is Rs. 55.