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The simple interest on Rs. 5000 at 10% per annum for 3 years is:
Rs.┬а1200
Rs.┬а1500
Rs.┬а1800
Rs.┬а1000
Rs.┬а1500
Calculate the effective percentage for 3 years at 10% per annum, which is 30%. Then directly find 30% of Rs. 5000 to get Rs. 1500 instantly.
Principal P = Rs. 5000, Rate R = 10% per annum, Time T = 3 years
SI=100P├ЧR├ЧTтАЛ
Calculate the effective percentage for 3 years at 10% per annum, which is 30%. Then directly find 30% of Rs. 5000 to get Rs. 1500 instantly.
Confusing simple interest with compound interest or missing the division by 100 when applying the percentage rate.
Identify Given Parameters
Note the principal amount P=Rs.┬а5000, annual interest rate R=10%, and time period T=3┬аyears.
P=5000,R=10,T=3
State the Simple Interest Formula
Write the standard formula used to compute simple interest.
SI=100P├ЧR├ЧTтАЛ
Substitute and Evaluate
Substitute the values into the formula: SI=1005000├Ч10├Ч3тАЛ=50├Ч30=1500.
SI=1005000├Ч10├Ч3тАЛ=1500
B is correct because the calculated simple interest is Rs. 1500.
Mastering simple interest calculations provides the core foundation for solving complex compound interest and annual installment problems.