A sum of Rs 2,000 invested at 9.25% simple interest per annum for 4 years will yield an interest of

Options

A. Rs 1,110
B. Rs 925
C. Rs 555
D. Rs 740

Answer

To find the simple interest earned on a sum of Rs 2,000 invested at a rate of 9.25% per annum for 4 years, we can 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-by-step Solution:

1. **Identify the values:**
- Principal (P) = Rs 2,000
- Rate (R) = 9.25%
- Time (T) = 4 years

2. **Substitute the values into the formula:**
\[ SI = \frac{2000 \times 9.25 \times 4}{100} \]

3. **Calculate the numerator:**
- First, calculate \(2000 \times 9.25\):
\[ 2000 \times 9.25 = 18500 \]
- Next, multiply by 4:
\[ 18500 \times 4 = 74000 \]

4. **Calculate the simple interest:**
- Now divide by 100:
\[ SI = \frac{74000}{100} = 740 \]

5. **Final Result:**
- The simple interest earned after 4 years is Rs 740.

### Conclusion:
The interest earned on a sum of Rs 2,000 invested at 9.25% simple interest per annum for 4 years is Rs 740.

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