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Ramesh has invested ₹1,232 at 6% p.a. simple interest in a bank. What amount will he get after 3 years?
₹1,448.76
₹1,453.76
₹1,485.80
₹1,416.80
₹1,453.76
Calculate interest as 6% × 3 = 18% of 1232. 18% of 1232 is 0.18 × 1232 = 221.76. Add this to the principal: 1232 + 221.76 = 1453.76.
Principal P = ₹1,232, Rate R = 6% p.a., Time T = 3 years
A=P×(1+100R×T)
Calculate interest as 6% × 3 = 18% of 1232. 18% of 1232 is 0.18 × 1232 = 221.76. Add this to the principal: 1232 + 221.76 = 1453.76.
Confusing Simple Interest (SI) with Compound Interest (CI). The question explicitly states simple interest, so use SI=(P×R×T)/100.
Calculate Simple Interest
Use the SI formula: SI=100P×R×T. Substituting the values, we get SI=1001232×6×3=1001232×18=10022176=221.76.
SI=221.76
Calculate Total Amount
The total amount is the sum of the principal and the interest: Amount=P+SI. Thus, 1232+221.76=1453.76.
A=1232+221.76=1453.76
B is correct because the calculated amount after 3 years is ₹1,453.76.
This concept is foundational for Compound Interest problems where the formula changes to A=P(1+R/100)T. Always check the interest type carefully in competitive exams.
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