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What would be the simple interest on a principal amount of Rs. 2 lakh for 3 years at a rate of 8% per annum?

  1. A
    Rs. 32,000
  2. B
    Rs. 48,000
  3. C
    Rs. 40,000
  4. D
    Rs. 36,000

Solution & Step-by-step Explanation

Given:
Principal (P) = Rs. 2,000,00 (2 lakh)

Time (T) = 3 years

Rate of interest (R) = 8% per annum

The formula for Simple Interest (SI) is:

SI=
100
P×R×T


SI=
100
200000×8×3


SI=2000×24=Rs. 48,000

Practice this question

Try it yourself before checking the explanation above.

What would be the simple interest on a principal amount of Rs. 2 lakh for 3 years at a rate of 8% per annum?
A
Rs. 32,000
B
Rs. 48,000
C
Rs. 40,000
D
Rs. 36,000

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