Question

The amount on ₹25,000 at 8% per annum for 6 years under simple interest is

(a) ₹35,000
(b) ₹37,000
(c) ₹45,000
(d) ₹47,000

Answer 1

It is given that,
Sum (P) = ₹25,000
Rate (R) = 8%
Time (T) = 6 years

$$\begin{gathered} I=\frac{P\times R\times T}{100} \\ =\frac{25000\times 8\times 6}{100} \\ =12000 \end{gathered}$$

Therefore, simple interest (I) = ₹12,000

Now, Amount = P + I = ₹25,000 + ₹12,000 = ₹37,000

Hence, the correct option is (b).