Multiple choice

Arjun takes a loan of Rs. 12,000 from a bank at a simple interest rate of 8% per annum. How much interest will he have to pay after 3 years?

  1. Rs. 2,400

  2. Rs. 2,640

  3. Rs. 2,880

  4. Rs. 2,980

  5. Rs. 3,040
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest = (P * R * T) / 100 = (12000 * 8 * 3) / 100 = 120 * 24 = 2880.

AI explanation

Using the simple interest formula SI = (P * R * T) / 100, we substitute the given values. The interest is calculated as (12000 * 8 * 3) / 100, which equals 120 * 24. This results in a total interest of Rs. 2,880.

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