Question

Find the amount of money received after 3 years when the Rs. 8000 invested at 20% rate of interest of simple interest. 
1. Rs. 10000
2. Rs. 12800
3. RS. 9600
4. Rs. 12000

Answer 1

Correct Answer - Option 2 : Rs. 12800

Given:

Principal = Rs. 8000

Rate = 20% simple interest

Time = 3 years

Formula used:

Simple Interest = (Principal × rate × time)/100

Amount = Principal + Interest

Calculation:

Interest for 3 years

⇒ (8000 × 3 × 20)/100

⇒ 4800

Amount = Principal + Interest

⇒ 8000 + 4800

⇒ 12800

∴ The amount of money is Rs. 12800.