Question

How much simple interest will be earned on \[Rs.200\] at \[6%\] simple interest for \[2\text{ }years\]?
A) \[200\]
B) \[24\]
C) \[260\]
D) \[280\]

Answer 1

Hint: To find the simple interest earned on certain money for a certain time period at a particular rate of interest, we multiply the money which can be termed as a principal with the time period (in years) and along with the rate of interest (in percentage) given. The following product is divided by \[100\], so as to convert the percentage value of rate to fractional non-percentage and the

Formula used:
The formula for the simple interest is given as \[S.I.=\dfrac{P\times R\times T}{100}\]
where \[P\] is the principal money, \[R\] is the rate of interest(in percentage) and \[T\] is the time period of the simple interest(in years).

Complete Step-by-step Solution
Now let us put the values of the above given variables into the formula, we get:
\[S.I.=\dfrac{P\times R\times T}{100}\]
\[S.I.=\dfrac{200\times 6\times 2}{100}\]
\[=\dfrac{2400}{100}\]
\[=Rs.24\]

Hence, the simple interest for sum of \[Rs.200\] at \[6%\] simple interest for \[2\text{ }years\] is \[Rs.24\].

Note:
Another method to find the simple interest is to find the simple interest for each year separately till the interest time period is given, in this case, the total time period is two years meaning the simple interest for the first year is
\[S.I.=\dfrac{P\times R\times T}{100}=\dfrac{200\times 6\times 1}{100}=Rs.12\]
And for the second year, it is
\[S.I.=\dfrac{P\times R\times T}{100}=\dfrac{200\times 6\times 1}{100}=Rs.12\]
Hence, the total interest for two years is given as:
\[Rs.12+Rs.12=Rs.24\]