The simple interest (in ₹) on ₹3,000 at the rate of 7% per annum in 2 years is:

Simple interest is charged only on the original principal for the whole period — it does not grow on top of interest already earned. The governing relationship is: Simple Interest (SI) = (Principal × Rate × Time) / 100, where the rate is the annual percentage and the time is in years, so the same flat amount of interest accrues every year.

Applying this to the given values:

1. The principal is P = ₹3,000, the rate is R = 7% per annum, and the time is T = 2 years.

2. Substitute these into the relationship: SI = (3,000 × 7 × 2) / 100.

3. Multiply the principal by the rate: 3,000 × 7 = 21,000.

4. Multiply that product by the time: 21,000 × 2 = 42,000.

5. Divide by 100 to get the interest: 42,000 / 100 = ₹420.

As an independent check, the interest for a single year is 3,000 × 7 / 100 = ₹210; since simple interest is the same flat amount each year, two years give 210 × 2 = ₹420, which matches the direct calculation.

So the simple interest on ₹3,000 at 7% per annum for 2 years is ₹420.