What would be the simple interest accrued in 4 years on a principal of Rs. 16,500 @ 16% p.a.?

Options

A. a. 10,560
B. b. 10,250
C. c. 12,500
D. d. 9,980

Answer

To find the simple interest accrued in 4 years on a principal of Rs. 16,500 at a rate of 16% per annum, we will follow these steps:

### Step 1: Identify the formula for Simple Interest
The formula for Simple Interest (SI) is given by:
\[ SI = \frac{P \times R \times T}{100} \]
where:
- \( P \) = Principal amount
- \( R \) = Rate of interest (in percentage)
- \( T \) = Time period (in years)

### Step 2: Substitute the values into the formula
Given:
- Principal \( P = 16,500 \) Rs
- Rate \( R = 16\% \)
- Time \( T = 4 \) years

Substituting these values into the formula:
\[ SI = \frac{16,500 \times 16 \times 4}{100} \]

### Step 3: Simplify the calculation
First, calculate the numerator:
\[ 16,500 \times 16 \times 4 \]

Calculating step-by-step:
1. \( 16,500 \times 16 = 264,000 \)
2. \( 264,000 \times 4 = 1,056,000 \)

Now, divide by 100:
\[ SI = \frac{1,056,000}{100} = 10,560 \]

### Step 4: State the final answer
The simple interest accrued in 4 years on a principal of Rs. 16,500 at a rate of 16% per annum is:
\[ \text{Simple Interest} = 10,560 \text{ Rs} \]

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