A lends a loan amount of Rs 2,50,000 to B at the simple interest of 6% per annum for a year. What is the total amount (in Rs) of interest paid by B ?

Options

A. `15,000`
B. `16,500`
C. `12,000`
D. `52,500`

Answer

To find the total amount of interest paid by B to A for the loan amount of Rs 2,50,000 at a simple interest rate of 6% per annum for one year, we will use the formula for simple interest.

### Step-by-Step Solution:

1. **Identify the Variables**:
- Principal (P) = Rs 2,50,000
- Rate of Interest (R) = 6% per annum
- Time (T) = 1 year

2. **Use the Simple Interest Formula**:
The formula for calculating simple interest (SI) is:
\[ SI = \frac{P \times R \times T}{100} \]

3. **Substitute the Values into the Formula**:
Substitute the values of P, R, and T into the formula:
\[ SI = \frac{2,50,000 \times 6 \times 1}{100} \]

4. **Calculate the Interest**:
- First, calculate \(2,50,000 \times 6\):
\[ 2,50,000 \times 6 = 15,00,000 \]
- Now divide by 100:
\[ SI = \frac{15,00,000}{100} = 15,000 \]

5. **Conclusion**:
The total amount of interest paid by B to A is Rs 15,000.

### Final Answer:
The total amount of interest paid by B is **Rs 15,000**.

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