Question

A bank provides a loan at the rate of 5% per annum to a trader on an amount of 12,50,000 for 5 years. The simple interest to be paid is:

A ₹2,25,400 Correct Answer Incorrect Answer
B ₹3,12,500 Correct Answer Incorrect Answer
C ₹2,40,600 Correct Answer Incorrect Answer
D ₹4,20,250 Correct Answer Incorrect Answer

Solution

Simple Interest = Principal × Rate/100 × Time Simple Interest = 12,50,000 × 5/100 × 5 = 312500 ∴ The simple interest is Rs.312500

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