Question

anu borrows 12,500 as 12% per annum for 3 years at simple interest find the simple interest she has to pay at the end of 3 years​

Answer 1

The interest is 4,500

Explanation:

We use the simple interest formula,

I = Prt

where

I = interest

P = principal amount = 12,500

r = interest rate = 12% = 0.12

t = time = 3 years

I = Prt

I = 12,500 × 0.12 × 3

I = 4,500