What is the simple interest (in Rs) on a principal of Rs 2000 at the rate of 5% per annum for 2 years?

Options

A. 250
B. 200
C. 150
D. 225

Answer

To find the simple interest on a principal amount, we can use the formula:

\[ \text{Simple Interest (SI)} = \frac{P \times R \times T}{100} \]

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

Given:
- \( P = 2000 \) Rs
- \( R = 5\% \)
- \( T = 2 \) years

Now, we can substitute the values into the formula:

1. **Substituting the values into the formula:**
\[ SI = \frac{2000 \times 5 \times 2}{100} \]

2. **Calculating the numerator:**
\[ 2000 \times 5 = 10000 \]
\[ 10000 \times 2 = 20000 \]

3. **Dividing by 100:**
\[ SI = \frac{20000}{100} = 200 \]

Thus, the simple interest is **200 Rs**.

### Final Answer:
The simple interest on a principal of Rs 2000 at the rate of 5% per annum for 2 years is **200 Rs**.

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