Simple Interest

The formula for simple interest is:

%5Ctext%7BSimple%20Interest%7D%20%3D%20%5Cfrac%7BP%20%5Ctimes%20R%20%5Ctimes%20T%7D%7B100%7D

Where: -

P

is the principal amount (₹400), -

R

is the rate of interest (5%), -

T

is the time period (3 years). Substituting the values:

%5Ctext%7BSimple%20Interest%7D%20%3D%20%5Cfrac%7B400%20%5Ctimes%205%20%5Ctimes%203%7D%7B100%7D%20%3D%20%E2%82%B960

The total amount is:

%5Ctext%7BTotal%20Amount%7D%20%3D%20P%20%2B%20%5Ctext%7BSimple%20Interest%7D%20%3D%20400%20%2B%2060%20%3D%20%E2%82%B9460

Thus, the correct answer is ₹460.

Chapter Questions
1 MCQs