Find the simple interest on a sum of Rs. 2000 at an annual interest rate of 5% for 2 years.

Explanation

Given Principal amount, P = 2000 rupees Interest rate, r = 5% per annum Time, t = 2 years $\therefore$ simple interest SI = $\frac{P \times R \times t}{100}$ = $\frac{2000 \times 5 \times 2}{100}$ = 200 rupees