Simple interest for four years — Aptitude Question
Simple interest for four years: What is the simple interest on ₹8,000 at 7.5% per annum for 4 years? Answer and worked solution on CodeKairo.
- Topic: Simple & Compound Interest
- Section: Quantitative Aptitude
- Difficulty: Easy
- Time target: 40 seconds
Question
What is the simple interest on ₹8,000 at 7.5% per annum for 4 years?
Options
- ₹2,000
- ₹2,200
- ₹2,400
- ₹2,600
Show the answer and the worked solution
Correct answer: C. ₹2,400
Worked solution
- SI = 8000 × 7.5 × 4 / 100 = 8000 × 0.3 = ₹2,400.
Answer: ₹2,400.
The idea
Simple interest is linear: rate × time gives the total percentage (7.5 × 4 = 30%), then take that percentage of the principal.
Shortcut. 10% of 8,000 is 800, so 7.5% is 600 a year, and four years give 4 × 600 = ₹2,400.
Common trap. ₹2,600 is where compounding leads: 8,000 × 1.075⁴ − 8,000 ≈ ₹2,684, and ₹2,600 is the nearest option. Simple interest is charged on the ₹8,000 alone, ₹600 a year for 4 years.
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