Sandeep lent Rs. 25000 to Arvind and if Arvind returned it to him after 3 years at simple interest rate of 12%, find the amount of interest.
- AOption (a)
Rs. 10,000
- BOption (b)
Rs. 9000
- COption (c)
Rs. 8000
- DOption (d)
Rs. 5000
- EOption (e)
None of these
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Correct answer
Rs. 9000
Why this answer is correct
Given:
Arvind borrow an amount = Rs. 25000
Time period = 3 years
Rate of interest = 12%
Formula Used:
(P × R × T)/100 = S.I
Where P = Principle, R = Rate of interest, T = Time, S.I = Simple interest.
Calculation:
S.I = (P × R × T)/100
⇒ (25000 × 12 × 3)/100
⇒ 250 × 36
⇒ 9000
∴ The amount of interest is Rs. 9000.
Additional Information
Borrowed money is considered as the Principle.