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Ramesh has borrowed an amount of ₹2,00,000 from a bank to start a business. How much simple interest will he pay at a rate of 11% per annum after 2 ye
Question

Ramesh has borrowed an amount of ₹2,00,000 from a bank to start a business. How much simple interest will he pay at a rate of 11% per annum after 2 years?

A.

₹ 44,000

B.

₹ 44,600

C.

₹ 45,500

D.

₹ 46,000

Correct option is A

Given:

- Principal (P) = ₹2,00,000

- Rate of Interest (R) = 11% per annum

- Time (T) = 2 years

Concept Used:

Simple Interest (SI) is calculated using the formula:
SI =  (P×R×T)100\frac{(P × R × T) }{100}​​

Solution:

Substituting the given values into the formula:

SI=(2,00,000×11×2)100 SI=44,00,000100 SI=44,000SI = \frac{(2,00,000 × 11 × 2) }{ 100} \\\ \\SI = \frac{44,00,000 }{ 100} \\\ \\SI = ₹44,000​​

The simple interest Ramesh will pay after 2 years is ₹44,000. 

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