The simple interest on Rs 7200 at 14% per annum for 7 years is:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 7056
Simple interest is \(\mathrm{SI}=\frac{P\times R\times T}{100}\), where \(P\) is the principal, \(R\) the rate per cent per annum and \(T\) the time in years.
Putting \(P=7200\), \(R=14\) and \(T=7\): \(\displaystyle \mathrm{SI}=\frac{7200\times14\times7}{100}\)
7200 divided by 100 is 72, and \(14\times7=98\), so \(\mathrm{SI}=72\times98=7056\)