Question

A man invests Rs. 5000 at 6% simple interest per annum. How much interest will he earn in 3 years? 
 

• A. Rs. 800
• B. Rs. 900
• C. Rs. 1000
• D. Rs. 1100

Hint:

For simple interest, time is always in years, rate is annual, and the formula is $I = \frac{P R T}{100}$.

Answer 1

The Correct Option is B

- Step 1: Recall the simple interest formula - \[ I = \frac{P \times R \times T}{100} \] 
where $P$ = Principal, 
$R$ = Rate of interest per annum, 
$T$ = Time in years, 
and $I$ = Simple Interest. 
- Step 2: Substitute given values - $P = 5000$, $R = 6$, $T = 3$. 
- Step 3: Calculate - \[ I = \frac{5000 \times 6 \times 3}{100} = \frac{90000}{100} = 900 \] 
- Step 4: Conclusion - The interest earned is Rs. 900, matching option (2).