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Mr. Deepak invested an amount of ₹ 21250 for 6 yr. At what rate of simple interest, will he obtain the total amount of ₹ 26350 at the end of 6 yr?

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:

  • Principal (P) = ₹ 18440
  • Rate of interest (R) = 15% per annum
  • Time (T) = 4 years

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:

  • Option A: 6% pa
  • Option B: 5% pa
  • Option C: 8% pa
  • Option D: 12% pa

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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