Multiple choice

A farmer borrowed a sum of Rs. 10,000 from a bank at 5% rate of interest per annum. How much interest will he pay the bank in 3 years?

  1. Rs. 30,000

  2. Rs. 1,500

  3. Rs. 500

  4. Rs. 11,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest = (P * R * T) / 100 = (10000 * 5 * 3) / 100 = 1500.

AI explanation

Using the simple interest formula, we calculate the interest by multiplying the principal of Rs. 10,000 by the rate of 5% and the time of 3 years, then dividing by 100. This gives (10000 x 5 x 3) / 100, which equals Rs. 1,500.

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