Suhani takes a loan of ₹65,000 at a rate of simple interest of 6% per year. Thus, at the end of the year, she will pay ₹ as interest.
Question
Suhani takes a loan of ₹65,000 at a rate of simple interest of 6% per year. Thus, at the end of the year, she will pay ₹ as interest.
Solution
To calculate the simple interest, we use the formula:
Interest = Principal x Rate x Time
In this case, the principal is ₹65,000, the rate is 6% (or 0.06 when expressed as a decimal), and the time is 1 year.
So, the interest Suhani will pay at the end of the year is:
Interest = ₹65,000 x 0.06 x 1 = ₹3,900
So, Suhani will pay ₹3,900 as interest at the end of the year.
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