What simple interest is earned on Rs. 5,000 at 8% per annum for 3 years?
Correct answer: B. Rs. 1,200
- A. Rs. 1,000
- B. Rs. 1,200
- C. Rs. 1,240
- D. Rs. 1,400
Explanation
Simple interest is calculated as P × r × t. Thus, Rs. 5,000 × 0.08 × 3 equals Rs. 1,200; the principal is not added to the interest during the period.
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