Question

If Rakesh borrows Rs. 36,000 from Sathesh at a rate of interest 6% S.I, at the end of four years, how much interest does Rakesh have to pay?

• A. Rs. 8,560
• B. Rs. 8,640
• C. Rs. 8,500
• D. Rs. 8,080

Hint:

When calculating interest over multiple years, multiplying the rate by the number of years provides the total percentage of interest accrued.

Answer 1

The Correct Option is B

Step 1: Calculate the interest.
Using the formula for simple interest: \[ I = P \times r \times t \] Where \( P = 36000 \) rupees, \( r = 0.06 \) (6%), and \( t = 4 \) years. \[ I = 36000 \times 0.06 \times 4 = 8640 \text{ rupees} \]