Join 60,000+ competitive exam aspirants
or with email
Your Cart
Subtotal₹0
Total₹0
Examoogle • User • info@examoogle.com • EE-2024-8821
Chapter 1 of 12 • Page 1 of 248🔒 Protected PDF • Watermarked
Join 60,000+ competitive exam aspirants
Akshay has borrowed an amount of ₹440000 from a bank to start a business. How much simple interest (in ₹) will he pay at a rate of 5% per annum after 4 years?
87000
89000
78000
88000
88000
Calculate 5% of 440000 (which is 22000) and simply multiply by the time (4 years) to get 88000.
Principal Amount (P) = ₹440000, Rate of interest (R) = 5% per annum, Time period (T) = 4 years.
SI=100P×R×T
Calculate 5% of 440000 (which is 22000) and simply multiply by the time (4 years) to get 88000.
Confusing Simple Interest with Compound Interest, or failing to identify that the rate is per annum for the total duration.
Identify Given Values
Extract the principal P=440000, annual interest rate R=5%, and duration T=4 years.
P=440000,R=5,T=4
Apply Simple Interest Formula
Substitute the values into the formula SI=100P×R×T to calculate the interest.
SI=100440000×5×4
Calculate Result
Simplify the expression by canceling the zeros in the denominator and numerator: 4400×20=88000.
SI=4400×20=88000
D is correct because the simple interest calculated using the formula SI=100P×R×T is ₹88000.
This concept is the foundation for Compound Interest calculations; remember that in simple interest, the principal remains constant every year, whereas it changes for compound interest.
Get instant step-by-step AI explanations, full shift Previous Year Papers (SSC GD, RRB, SSC JE), and regional rank analysis on the official Examoogle App.
Free Download • 100K+ Aspirants