Calculate the amount on Rs. 20000 at 5% per annum for 5 years under simple interest (in Rs. )

Options

A. 5000
B. 25000
C. 24000
D. 20000

Answer

B

Explanation

S.I = `(P xx N xx R)/(100) = (20000 xx 5 xx 5)/(100) = 5000`
Amount (A) = I + P
where I is the interest and P is the principal.
A = 5000 + 20000 = Rs. 25000
Hence, the correct option is (b).