Question

Rs. 4000 are invested for 3 years in a scheme of simple interest at a rate of 20% per annum. What will be the amount (in Rs.) obtained after 3 years?
1. Rs. 6400 
2. Rs. 6000
3. Rs. 7200
4. Rs. 6600

Answer 1

Correct Answer - Option 1 : Rs. 6400 

Concept used:

SI = PRT/100

Amount = Principal + Interest

Calculations:

We know that,

SI = (PRT/100)

⇒ SI = (4000 × 20 × 3)/100

⇒ SI = 2400

Amount = Principal + Interest

⇒ A = 4000 + 2400 = 6400

∴ Required amount is Rs. 6400