Find the simple interest on Rs. 6,000 at 8% per annum for 3 years.

Question

Anil invests some money at a fixed rate of interest, compounded annually. If the interests accrued during the second and third year are ₹ 806.25 and ₹ 866.72, respectively, the interest accrued, in INR, during the fourth year is nearest to

Answer 1

Step 1: \(SI = \dfrac{P\cdot R\cdot T}{100} = \dfrac{6000\times8\times3}{100}\).
Step 2: \(= \dfrac{144000}{100} = \text{Rs. }1440\).

Quick Tip: Simple interest grows linearly: \(SI=\dfrac{PRT}{100}\).

Find the simple interest on Rs. 6,000 at 8% per annum for 3 years.

The Correct Option is A

Solution and Explanation

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