The simple interest on an amount of ₹2800 at the end of 3 years is ₹420. What would be the simple interest on an amount of ₹3200 for the same rate and the same period?
Answer & explanation
Correct answer: option 1
Simple interest = \(\frac{Principal ×Rate × Time }{100}\)
420 = \(\frac{2800 ×Rate × 3 }{100}\)
Rate = 5%
Now,
Simple interest = \(\frac{Principal ×Rate × Time }{100}\)
= \(\frac{ 3200 × 5 × 3 }{100}\)
= Rs. 480