alleryFind the simple interest on 5,000 at 8% per annum for 3 years.
A1,000
B1,200
C1,300
D1,400
Answer & Solution
Correct answer: B. 1,200
1. Apply P x R x T / 100 with P = 5000, R = 8 and T = 3.
2. One year's interest is 8 per cent of 5000 = 400.
3. Over three years that is 400 x 3.
4. So the simple interest is 1200.
5. The amount repayable would be 5000 + 1200 = 6200, but the question asked only for the interest.
_Source: syllabus Maths, Ch 7 'Comparing Quantities', S7.4 Compound Interest_
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