Question
A person invests ₹8000 in a scheme offering 5% simple
interest per annum. After 2 years, the total amount becomes ₹8800. How much interest is earned after 3 years at the same rate?Solution
Principal = ₹8000 Rate = 5% per annum Time = 2 years Simple Interest (SI) = (P * R * T) / 100 Interest for 2 years = (8000 * 5 * 2) / 100 = ₹800 Total amount after 2 years = ₹8800 Now, calculate interest for 3 years: Interest for 3 years = (8000 * 5 * 3) / 100 = ₹1200 Thus, the interest earned after 3 years is ₹1200. Answer: c) ₹1200
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