CSAT: Simple Interest Calculation Quiz

Question

Ravi borrows ₹12,000 at a simple interest rate of 8% per annum. How much interest will he pay after 3 years?

Accepted Answer

The formula for simple interest (SI) is:

SI = \frac{P \times R \times T}{100}

Where:

Substitute the values:

SI = \frac{12,000 \times 8 \times 3}{100}

Multiply numerator:

12,000 \times 8 = 96,000

96,000 \times 3 = 288,000

Divide by 100:

SI = \frac{288,000}{100} = 2,880

Answer: A) ₹2,880

Answer

₹2,880

Answer

₹3,200

Answer

₹3,600

Answer

₹4,000

Options