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Find the value of the interest earned on a sum of Rs6,000 for 5 years at 8.4% simple interest rate per annum .
Rs2,520
Rs2,252
Rs2,220
Rs2,250
To calculate the interest earned on a sum of money using simple interest, use the formula:
Simple Interest=P×R×T100
- P is the principal amount, Rs 6,000.
- R is the rate of interest, 8.4% per annum.
- T is the time period, 5 years.
Perform the calculation:
Simple Interest=6000×8.4×5100=Rs2,520
- Option 1: Rs 2,520 - This is the correct option.
- Option 2: Rs 2,252 - Incorrect.
- Option 3: Rs 2,220 - Incorrect.
- Option 4: Rs 2,250 - Incorrect.
Based on the calculation:
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