What would be the simple interest (in ₹) on a principal amount of ₹1 lakh for 2 years at the rate of 12 percent per annum?
- A₹25,000
- B₹30,000
- C₹12,000
- D₹24,000
Solution & Step-by-step Explanation
Given parameters:
Principal (P) = ₹1 lakh=₹1,000,000 or ₹1,00,000
Rate (R) = 12% per annum
Time (T) = 2 years
The formula for Simple Interest (SI) is:
SI=
100
P×R×T
Substituting the values:
SI=
100
100000×12×2
SI=1000×24=₹24,000
Principal (P) = ₹1 lakh=₹1,000,000 or ₹1,00,000
Rate (R) = 12% per annum
Time (T) = 2 years
The formula for Simple Interest (SI) is:
SI=
100
P×R×T
Substituting the values:
SI=
100
100000×12×2
SI=1000×24=₹24,000