Question

Find the simple interest payable on a deposit of ₹20,000 at 12% per annum over a period of 4 years.​

Answer 1

The simple interest accumulated on a principal of ₹20,000 at a rate of 12% per year for 4 years is ₹9600.

Explanation:

Given

Principle P = ₹20,000

Rate r = 12% per annum = 0.12 per annum

Time period t = 4 years

To determine

Simple Interest I = ?

Using the simple interest formula equation

I = Prt

substituting P = 20000, r = 0.12, t = 4

I = 20000 × 0.12 × 4

I = ₹9600

Therefore, the simple interest accumulated on a principal of ₹20,000 at a rate of 12% per year for 4 years is ₹9600.