Question

Find the simple interest on ₹ 15,000 at the rate of 8% per annum for 2 years (in Rupees)

• A. 4200
• B. 2400
• C. 2500
• D. 2200

Hint:

To calculate simple interest, always use the formula: \[ \text{Simple Interest} = \frac{P \times R \times T}{100} \] Make sure to check the units for time and rate before substituting values into the formula.

Answer 1

The Correct Option is B

The formula for Simple Interest (SI) is given by:
$SI = \frac{P \times R \times T}{100}$
Where:
P = Principal amount = ₹ 15,000
R = Rate of interest per annum = 8%
T = Time period in years = 2 years
Substitute the given values into the formula:
$SI = \frac{15000 \times 8 \times 2}{100}$.
Cancel out the two zeros from the numerator and the denominator:
$SI = 150 \times 8 \times 2$.
First, multiply $150 \times 8$:
$150 \times 8 = 1200$.
Now, multiply the result by 2:
$SI = 1200 \times 2 = 2400$.
The simple interest is ₹ 2400.