Question

 A shopkeeper takes a loan of Rs. 54,000 with simple interest for 6 years at the rate of  6%. At the end of the loan period, what is the interest that he pays?
1. Rs. 12,440
2. Rs. 22,440
3. Rs. 18,440
4. Rs. 19,440

Answer 1

Correct Answer - Option 4 : Rs. 19,440

Given:

A shopkeeper takes a loan (Principal) = Rs. 54000

Time = 6 years

Rate = 6%

Concept used:

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

Calculation:

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

⇒ (54,000 × 6 × 6)/100

⇒ 540 × 36

⇒ Rs. 19,440

∴ The simple interest is Rs. 19,440