Correct Answer: 6% pa
Explanation:
To solve this problem, we will use the formula for Simple Interest (SI):
SI = (P × R × T) / 100 Where: P = Principal amount R = Annual rate of interest T = Time in years
Given:
Step-by-step calculation:
Multiply the principal with rate and time:
18440 × 15 × 4 = 1106400
Now divide the result by 100 to calculate interest:
SI = 1106400 ÷ 100 = ₹ 11064
So, the simple interest accrued over 4 years is ₹ 11064.
Now, let’s match this with the closest option provided:
Although ₹ 11064 is the exact value, the closest approximation provided in the options is:
6% pa — This is the best match.
📌 Final Answer: 6% pa
Always remember: Simple Interest does not account for compound growth. It's ideal for short-term or one-time interest calculations.
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