If Anirban borrows Rs. 72,000 from Akash at rate of simple interest 6%, at the…
2022
If Anirban borrows Rs. 72,000 from Akash at rate of simple interest 6%, at the end of four years how much interest amount Anirban has to pay?
Answer: B. Rs. 17,280 — ConceptSimple Interest (SI) is interest charged only on the original principal, the same amount every year. The governing formula is SI = (P × R × T) / 100,…
- A.
Rs. 16,540
- B.
Rs. 17,280
- C.
Rs. 18,560
- D.
Rs. 17,460
Attempted by 66 students.
Show answer & explanation
Correct answer: B
Concept
Simple Interest (SI) is interest charged only on the original principal, the same amount every year. The governing formula is SI = (P × R × T) / 100, where P is the principal, R is the annual rate of interest (in percent) and T is the time in years.
Application
Identify the values from the statement: principal P = ₹72,000, rate R = 6% per annum, time T = 4 years.
Substitute into the formula: SI = (72,000 × 6 × 4) / 100.
Multiply the numerator: 72,000 × 6 = 4,32,000; then 4,32,000 × 4 = 17,28,000.
Divide by 100: SI = 17,28,000 / 100 = ₹17,280.
Cross-check
A quick way to confirm: the interest for one year is 6% of ₹72,000 = ₹4,320. Over 4 years (simple interest, so equal each year) the total is 4 × ₹4,320 = ₹17,280, which matches. The interest the borrower must pay is ₹17,280.