Question

A sum of Rs. 12,000 is lent at 6% simple interest for 4 years. What is the interest?

• A. Rs. 2,880
• B. Rs. 2,900
• C. Rs. 2,920
• D. Rs. 2,940

Hint:

Calculate simple interest yearly and multiply by time for efficiency.

Answer 1

The Correct Option is A

The problem involves calculating simple interest using the formula: SI = (P × R × T) / 100, where P is the principal amount, R is the rate of interest, and T is the time period.

Given:

Principal (P) = Rs. 12,000
Rate of Interest (R) = 6%
Time (T) = 4 years

Solution:

Substitute the given values into the simple interest formula:

SI = (12000 × 6 × 4) / 100

Calculating inside the parentheses first:

12000 × 6 = 72,000

SI = (72,000 × 4) / 100

72,000 × 4 = 288,000

Therefore, SI = 288,000 / 100 = 2,880

The simple interest for Rs. 12,000 at 6% for 4 years is Rs. 2,880.
The correct option is: Rs. 2,880