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What is the simple interest accrued by the trader after two years on a loan of Rs. 3000 at 8% per annum?

a. Rs. 480
b. Rs. 4800
c. Rs. 240
d. Rs. 2400

1 Answer

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Final answer:

The simple interest accrued on a loan of Rs. 3000 at an interest rate of 8% per annum after two years is Rs. 480. The calculation uses the simple interest formula I = P × r × t, where P is the principal, r is the annual interest rate, and t is the time in years.

Step-by-step explanation:

The simple interest accrued by the trader after two years on a loan of Rs. 3000 at 8% per annum can be calculated using the formula for simple interest, which is: I = P × r × t, where I is the interest, P is the principal amount, r is the annual interest rate, and t is the time in years. So for a loan of Rs. 3000 at an interest rate of 8% for two years, the calculation would be: I = Rs. 3000 × 0.08 × 2, which equals Rs. 480. Therefore, the correct answer is a. Rs. 480.

For other examples, the interest from a $5,000 loan after three years with a simple interest rate of 6% is calculated as $5,000 × 0.06 × 3 = $900. On another loan of $10,000 for five years, if you receive $500 in simple interest, the interest rate charged is found using the simple interest formula rearranged to r = I / (P × t), which results in a rate of 1%.

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