Question

Simple Interest on ₹5000 at 8% per annum for 3 years is:

• A. ₹1000
• B. ₹1200
• C. ₹1400
• D. ₹1500

Hint:

Simple Interest is always calculated on the original principal amount only.

Answer 1

The Correct Option is B

Concept: Simple Interest (S.I.) is calculated only on the original principal amount. Formula: \[ \text{S.I.} = \frac{P \times R \times T}{100} \] where:

• \(P\) = Principal
• \(R\) = Rate of interest
• \(T\) = Time

Step 1: Write the given values.
Principal: \[ P = 5000 \] Rate: \[ R = 8% \] Time: \[ T = 3 \text{ years} \]

Step 2: Substitute values into formula.
\[ \text{S.I.} = \frac{5000 \times 8 \times 3}{100} \]

Step 3: Perform calculations carefully.
\[ 5000 \times 8 = 40000 \] \[ 40000 \times 3 = 120000 \] \[ \frac{120000}{100} = 1200 \]

Step 4: Write the final answer.
Therefore, the Simple Interest is: \[ \boxed{₹1200} \]