Question

A sum of rs 400 is lent for 3 yrs at the rate of 6% per annum. Find the interest.

Answer 1

Interest is equal to rs 72

Simple Interest is computed by multiplying the principal to the interest rate and the time.

I = P * r * t

Principal = rs 400
Interest rate = 6%
Term / time = 3 yrs

I = 400 * 6% * 3
I = 72 the total interest that must be paid in 3 yrs.