Question

If a sum of ₹3000 is lent out at 3% per annum for 20 years under simple interest, then the amount at the end of 20^th year is

(a) ₹1800
(b) ₹1080
(c) ₹3600
(d) ₹4800

Answer 1

It is given that,
Sum (P) = ₹3000
Rate (R) = 3%
Time (T) = 20 years

$$\begin{gathered} I=\frac{P\times R\times T}{100} \\ =\frac{3000\times 3\times 20}{100} \\ =1800 \end{gathered}$$

Amount = I + P = ₹1800 + ₹3000 = ₹4800

Hence, the correct option is (d).