Question

Amount received on Rs.3000 for 2 years at the rate of 11% per annum is
(a) Rs.2340
(b) Rs.3660
(c) Rs.4320
(d) Rs.3330

Answer 1

Hint: In this question, we are given the principal as Rs.3000 and time 2 years. We are also provided with the rate on which the money is given as 11% per annum. We have to find out the simple interest using the formula:
S.I = $\dfrac{principal\times time\times rate}{100}$
We also have to find the total amount received which is equal to principal + interest.

Complete step by step solution:
Now, let’s solve the question.
As we know that simple interest is a method of calculating the interest for a principal amount of money. We use a particular formula which helps in calculating simple interest. For that, we should have principal(P) which is the amount, time(T) for which the money is given and rate(R) on which it is given. So the formula is:
S.I = $\dfrac{P\times R\times T}{100}$
As per question, P = Rs.3000, T = 2 years, R = 11%. Put all the values in the formula, we get:
$\Rightarrow$ S.I = $\dfrac{3000\times 11\times 2}{100}$
Multiply the terms in the numerator:
$\Rightarrow$ S.I = $\dfrac{66000}{100}$
Reduce the fraction, we get:
$\Rightarrow$ S.I = Rs.660
Now, we will find the total amount received which will be the sum of principal and interest.
Amount = P + S.I
$\Rightarrow $ Amount = 3000 + 660
$\therefore $ Amount = Rs.3660
So the correct answer is option (b).

Note: Sometimes, students think that amount is the simple interest itself, but amount basically means compound interest which is formed by adding principal amount and simple interest. It cannot happen like that rate is not given. Because if the rate is not given then it cannot be called as interest. Amount which is provided on some rate, then only it is said that amount has some interest.