Easy
Find the simple interest on ₹2,000 at 5% per annum for 3 years.
Explanation
Explanation
Step 1: Formula: Simple Interest (SI) = (P × R × T) ÷ 100.
Step 2: Here P = ₹2,000, R = 5% per year and T = 3 years.
Step 3: SI = (2000 × 5 × 3) ÷ 100 = 30000 ÷ 100 = ₹300.
Step 4: Quick check: interest per year = 5% of 2000 = ₹100, and for 3 years = ₹300 ✓.
Answer: ₹300.
PRO TIP
Re-check your working by substituting the answer back into the original question.