Question

Suraj borrowed Rs. 7,00,000 from a bank at 12% Per annum simple interest to pay an installment of his new house in society. a) How much interest does he pay in a year​

Answer 1

Given a principal of Rs. 7,00,000, a rate of 12% per annum, and a time of 1 year, the interest paid by Suraj is Rs. 84,000.

Step-by-step explanation:

To calculate the interest paid in a year, we use the simple interest formula:

Interest = Principal x Rate x Time

Given:

1. Principal (P) = Rs. 7,00,000
2. Rate (R) = 12% per annum
3. Time (T), in years = 1 year

Substituting these values into the formula, we can calculate the interest:

Interest = Rs. 7,00,000 x 0.12 x 1

= Rs. 84,000

Therefore, Suraj will pay Rs. 84,000 in interest in a year.