Find the difference in amount and principal for ₹

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Find the difference in amount and principal for ₹ 4000 at the rate of 5% annual interest in 4 yr.

1. ₹ 865.50
2. ₹ 865
3. ₹ 400
4. ₹ 800
5. None of the above

Correct Option: D

The required difference in amount and principal is SI = A - P
Here, P = ₹ 4000, R = 5% T = 4 yr
According to the formula.
SI = (P x R x T) /100
= (4000 x 5 x 4)/100
= ₹ 800