Madhya Pradesh Police Exam Model Paper 5

Given:
Principal = Rs. 1500
Rate of interest = 8%
Time period = 4 years
Formula used:
$\mathit{I}=\left(\mathit{P}\times \mathit{t}\times \mathit{r}\right)/100$
I = Interest
P = Principal
t = Time period
r = Rate of interest
Calculation:
According to the question,
$\mathit{I}=\left(1500\times 4\times 8\right)/100$
$\Rightarrow \mathit{I}=15\times 4\times 8$
$\Rightarrow \mathit{I}=\mathit{R}\mathit{s}.480$
∴ The interest payable on the deposit is Rs. 480.