Avala borrowed Rs 4800 at a simple interest rate of 12.5% per annum for 2 years. Calculate the total interest paid by Avala?Options1400 1250 13001200
Question
Avala borrowed Rs 4800 at a simple interest rate of 12.5% per annum for 2 years. Calculate the total interest paid by Avala?Options1400 1250 13001200
Solution
To calculate the simple interest, you can use the formula:
Interest = (Principal amount * Rate * Time) / 100
Here, the principal amount is Rs 4800, the rate is 12.5% per annum, and the time is 2 years.
So,
Interest = (4800 * 12.5 * 2) / 100 Interest = Rs 1200
So, Avala paid Rs 1200 as interest.
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