The bar graph given below shows the per annum rate of interest offered on the 5 given simple interest investment schemes.
Simple Interest = [(Principal × Annual Rate of Interest × Time period)/100]
Principal in scheme R is Rs. X. Time period of investment in scheme R is 3 years. What is the simple interest (in Rs.) in scheme R?
Show answer & explanation
Correct answer: A
Explanation
Given:
Interest rate for Scheme R = 8%
Time = 3 years
Principal = x
According to the formula:
SI = (P × R × T) / 100
SI = (x × 8 × 3) / 100
= 24x / 100
= x × 0.24