Multiple choice

The simple interest on a certain sum is ₹1200 in 4 years at the rate of 8% per annum. What will be the simple interest on three times that principal in 3 years at 6% per annum?

  1. ₹2025

  2. ₹2050

  3. ₹2250

  4. ₹2125

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A Correct answer
Explanation

Original principal P = (1200 * 100) / (4 * 8) = 3750. The new principal is 3 * 3750 = 11250. Simple interest = (11250 * 3 * 6) / 100 = 2025.

AI explanation

Using the simple interest formula SI equals P times R times T divided by 100, the principal is calculated as 1200 times 100 divided by 8 times 4, yielding Rs. 3750. The new principal is three times this value, which is Rs. 11250. Applying the simple interest formula again for the new principal gives SI equal to 11250 times 6 times 3 divided by 100, resulting in Rs. 2025.