Find the simple interest on Rs. 1000 for 3 years, if rate of interest for 3 years is 4%, 6% and 7% respectively. 1000 रू. का तीन वर्षों में साधारण ब्याज ज्ञात कीजिए, यदि 3 वर्ष में ब्याज की दर 4%, 6% और 7% है।
D
Correct answer
Explanation
Simple interest for each year is calculated separately on the principal. Year 1: Rs. 1000 × 4% = Rs. 40. Year 2: Rs. 1000 × 6% = Rs. 60. Year 3: Rs. 1000 × 7% = Rs. 70. Total simple interest = 40 + 60 + 70 = Rs. 170. The key is that simple interest is always calculated on the original principal, not on accumulated interest.