What will be the simple interest accrued on a sum of Rs. 5,224/- at a rate of 5 p.c.p.a. in 5 years? Options are (a) Rs. 1,360/- (b) Rs. 653/- (c) Rs. 763/- (d) None of these.

Options

A. Rs. 1,360/-
B. Rs. 653/-
C. Rs. 763/-
D. None of these

Answer

To find the simple interest accrued on a sum of Rs. 5,224 at a rate of 5% per annum over a period of 5 years, we will use the formula for simple interest:

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

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

**Step 1: Identify the values**
- Principal (P) = Rs. 5,224
- Rate (R) = 5% per annum
- Time (T) = 5 years

**Step 2: Substitute the values into the formula**
Now, we will substitute the values into the simple interest formula:

SI = (5224 × 5 × 5) / 100

**Step 3: Calculate the multiplication**
First, calculate the multiplication in the numerator:

5224 × 5 = 26,120

Now multiply that by 5:

26,120 × 5 = 130,600

**Step 4: Divide by 100**
Now, we will divide the result by 100 to find the simple interest:

SI = 130,600 / 100 = 1,306

**Step 5: Conclusion**
The simple interest accrued on a sum of Rs. 5,224 at a rate of 5% per annum in 5 years is Rs. 1,306. Since this amount does not match any of the provided options (a) Rs. 1,360, (b) Rs. 653, (c) Rs. 763, the correct answer is (d) None of these.

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