Question

What is the simple interest on Rs. 500 borrowed at 8\% per annum for 3 years?

• A. Rs. 120
• B. Rs. 140
• C. Rs. 160
• D. Rs. 180

Hint:

Use the formula \( \text{SI} = \frac{P \times R \times T}{100} \) for quick simple interest calculations.

Answer 1

The Correct Option is A

Simple Interest (SI) is calculated using the formula: \[ \text{SI} = \frac{P \times R \times T}{100} \] where,
\(P = Rs. 500\) (Principal),
\(R = 8\%\) (Rate of interest per annum),
\(T = 3\) years (Time period). Substituting the values: \[ \text{SI} = \frac{500 \times 8 \times 3}{100} = \frac{12000}{100} = Rs. 120 \] Therefore, the simple interest is Rs. 120.