[amp_mcq option1=”Rs. 20,000″ option2=”Rs. 33,333″ option3=”Rs. 40,000″ option4=”Rs. 50,000″ correct=”option2″]
The correct answer is B. Rs. 33,333.
The formula for calculating simple interest is:
Interest = Principal x Rate x Time
In this case, the principal is Rs. 2,00,000, the rate is 5%, and the time is 5 years. So, the interest is:
Interest = 2,00,000 x 5% x 5 = Rs. 33,333
Option A is incorrect because it is the amount of interest for a period of 1 year. Option C is incorrect because it is the amount of interest for a period of 2 years. Option D is incorrect because it is the amount of interest for a period of 3 years.