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Question

The simple interest on \(Rs.\ 4000\) for \(1\) year at \(12\%\) p.a. is( )
A. \(Rs.\ 4800\)
B. \(Rs.\ 480\)
C. \(Rs.\ 48000\)
D. \(Rs.\ 4200\)

Answer

B
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Solution

Simple interest \(=\frac{P\times r\times t}{100}\)
Where Principal (P) \( =Rs.\ 4000\)
Rate(r) \(=12\%\) p.a.
Time(t)\(=1 \)year
Putting given values ,we get,
Simple interest \(=\frac{4000\times 12\times 1}{100}=40\times 12\times 1=Rs.\ 480\)
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