Multiple choice

Ram bought a bike for Rs. 60, 000. He paid Rs. 10000 cash down and the rest at the end of 2 years at 15% simple interest. How much more did he pay as simple interest?

  1. Rs. 15, 000

  2. Rs. 25, 000

  3. Rs. 35, 000

  4. Rs. 50, 000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Principal = 60000 - 10000 = 50000. Time = 2 years. Rate = 15%. SI = 50000 * 15 * 2 / 100 = 15000.

AI explanation

The remaining balance to be paid is calculated by subtracting the down payment from the total cost, which is 60000 minus 10000 to equal Rs. 50,000. Using the simple interest formula, the interest equals (Principal * Rate * Time) / 100, resulting in (50000 * 15 * 2) / 100. Calculating this gives a simple interest amount of Rs. 15,000.

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