Multiple choice

What is the simple interest (in Rs.) on a principal of Rs. 12,000 at the rate of 2% per annum for 2 years?

  1. 500

  2. 240

  3. 480

  4. 550
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SI = (P * R * T) / 100 = (12000 * 2 * 2) / 100 = 120 * 4 = 480.

AI explanation

Using the simple interest formula Simple Interest = (Principal * Rate * Time) / 100, we substitute the given values. The calculation is (12000 * 2 * 2) / 100, which equals 120 * 4. The simple interest is Rs. 480.

Keep practicing — related questions