Question

A sum of Rs.21,000 is lent at 7% per annum for 11 years at simple interest. Find the simple interest.
1. Rs 16,170
2. Rs 23,456
3. Rs.10,456
4. Rs.13,456

Answer 1

Correct Answer - Option 1 : Rs 16,170
Given

Principal = Rs.21,000; rate = 7% per annum; Time = 11 years

Formula used 

Simple interest = (Principal × Rate × Time)/100

Calculation

Simple interest = (21,000 × 7 × 11)/100

⇒ Rs.16,170

∴ The simple interest is Rs.16,170.