A person borrows ₹20,000 at 8% per annum simple interest for 3 years. What is the total interest he will pay at the end of the 3 years?
Show answer & explanation
Correct answer: A
Explanation
Given:
Principal = 20,000
Rate = 8% per annum
Time = 3 years
Formula:
Simple interest = (P × R × T) / 100
Simple interest = (20,000 × 8 × 3) / 100 = ₹4,800