Multiple choice

What would be the simple interest accrued in 4 years on a principle of Rs. 16,500 @ 16 p.c.p.a. ?

  1. Rs. 11,560

  2. Rs. 10,560

  3. Rs. 12,500

  4. Rs. 9,980
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = (Principal × Rate × Time) ÷ 100. Here: (16500 × 16 × 4) ÷ 100 = 16500 × 64 ÷ 100 = 165 × 64 = 10560. Option A (Rs. 11,560) would be the amount if rate was about 17.5%, not 16%. Option C (Rs. 12,500) assumes incorrect calculation.

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