₹ 5,000 is put in a bank at 5% simple interest. The amount at the end of 2 years will be :

1. ₹ 250

2. ₹ 500

3. ₹ 5,500

4. ₹ 4,500

Given:

P = ₹ 5,000

R = 5%

T = 2 years

$\because \text{S.I.} = ₹ \Big(\dfrac{P \times R \times T}{100}\Big)\\[1em] \Rightarrow \text{S.I.} = ₹ \Big(\dfrac{5,000 \times 5 \times 2}{100}\Big)\\[1em] \Rightarrow \text{S.I.} = ₹ \dfrac{50,000}{100}\\[1em] \Rightarrow \text{S.I.} = ₹ 500$

And,

$\text{A = P + S.I.}\\[1em] \Rightarrow\text{A} = ₹ 5,000 + ₹ 500\\[1em] \Rightarrow\text{A} = ₹ 5,500$

Hence, option 3 is the correct option.