Question

1. if rs 1500 is invested at a rate of 6% per annum, what will be the simple interest after 7 years?

a rs 620
b rs 600
c rs 650
d rs 630

Explanation:

Step1: Recall simple interest formula

The formula for simple interest \( I \) is \( I = \frac{P \times R \times T}{100} \), where \( P \) is the principal amount, \( R \) is the rate of interest per annum, and \( T \) is the time in years.

Step2: Identify values

Here, \( P = 1500 \) Rs, \( R = 6\% \), and \( T = 7 \) years.

Step3: Substitute values into formula

Substitute \( P = 1500 \), \( R = 6 \), and \( T = 7 \) into the formula:
\( I=\frac{1500\times6\times7}{100} \)
First, calculate \( 1500\times6 = 9000 \), then \( 9000\times7 = 63000 \). Then divide by 100: \( \frac{63000}{100}=630 \).

Answer:

d. Rs 630