Simple interest for three years — Aptitude Question
Simple interest for three years: What is the simple interest on ₹12,000 at 8% per annum for 3 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 ₹12,000 at 8% per annum for 3 years?
Options
- ₹2,400
- ₹2,880
- ₹3,120
- ₹3,600
Show the answer and the worked solution
Correct answer: B. ₹2,880
Worked solution
- Total rate = 8 × 3 = 24%.
- SI = 24% of 12,000 = ₹2,880.
Answer: ₹2,880.
The idea
Simple interest is linear, so multiply rate by time to get one total percentage and apply it once. No compounding is involved.
Shortcut. 24% is 25% less 1%: a quarter of 12,000 is 3,000, minus 120 gives ₹2,880. Or 8% of 12,000 is 960 a year, × 3.
Common trap. ₹3,120 — rounding 24% up to 25% (₹3,000) and then adding the 1% (₹120) instead of taking it off.
All Simple & Compound Interest questions · placement mock tests