Question

Rs. 6000 is invested at 7 simple interest per annum for 4 years. Find the total amount.

• A. 7120
• B. 7200
• C. 7680
• D. 7800

Hint:

Use SI = $\frac{P \cdot R \cdot T}{100}$ and add to principal for total amount.

Answer 1

The Correct Option is A

- Step 1: Simple interest. SI = $\frac{P \cdot R \cdot T}{100}$, $P = 6000$, $R = 7$, $T = 4$.
- Step 2: Calculate. SI = $\frac{6000 \cdot 7 \cdot 4}{100} = 1680$.
- Step 3: Total amount. $6000 + 1680 = 7120$.
- Step 4: Verify. Yearly interest = $\frac{6000 \cdot 7}{100} = 420$. For 4 years: $420 \cdot 4 = 1680$. Total = $6000 + 1680 = 7120$.
- Step 5: Conclusion. Option (1) 7120 is correct.