Multiple choice

Find the amount obtained by investing 24,000 at 18% p.a. simple interest for five years.

  1. 21600

  2. 44000

  3. 45600

  4. 48000
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C Correct answer
Explanation

Simple Interest = (P * R * T) / 100 = (24000 * 18 * 5) / 100 = 240 * 90 = 21600. Total amount = Principal + Interest = 24000 + 21600 = 45600.

AI explanation

The simple interest formula is Interest equals Principal times Rate times Time divided by 100. Substituting the values gives Interest equals 24000 times 18 times 5 divided by 100, which equals 21600. Adding this interest to the principal gives 24000 plus 21600, resulting in a total amount of 45600.

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