Multiple choice

Simple interest on Rs. 50,000 for three years at interest rate of 5.5% p.a. is

  1. Rs. 8250

  2. Rs. 825

  3. Rs. 8520

  4. None of these
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A Correct answer
Explanation

Simple interest is calculated as (Principal * Rate * Time) / 100. Plugging in the values: (50000 * 5.5 * 3) / 100 = 500 * 5.5 * 3 = 2750 * 3 = 8250.

AI explanation

Using the simple interest formula, interest equals principal multiplied by rate multiplied by time divided by 100. Substituting the given values gives 50000 multiplied by 5.5 multiplied by 3 divided by 100, which simplifies to 500 multiplied by 16.5. The simple interest is therefore Rs. 8250.

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