A loan of Rs. 2000 is taken at a simple interest rate of 8% per annum. How much

A loan of Rs. 2000 is taken at a simple interest rate of 8% per annum. How much interest will be paid after 4 years? (2000)

A loan of Rs. 2000 is taken at a simple interest rate of 8% per annum. How much interest will be paid after 4 years? (2000)

Step 1: Identify the principal amount (P). In this case, P = Rs. 2000.
Step 2: Identify the rate of interest (r). Here, r = 8% per annum, which can be written as 0.08 in decimal form.
Step 3: Identify the time period (t) for which the loan is taken. In this case, t = 4 years.
Step 4: Use the simple interest formula: Simple Interest = P * r * t.
Step 5: Substitute the values into the formula: Simple Interest = 2000 * 0.08 * 4.
Step 6: Calculate the interest: 2000 * 0.08 = 160, then 160 * 4 = 640.
Step 7: The total interest paid after 4 years is Rs. 640.

Simple Interest Calculation – Understanding how to calculate simple interest using the formula SI = P * r * t, where P is the principal amount, r is the rate of interest, and t is the time in years.