What is the simple interest on Rs. 2,500 at the rate of 12% per annum for a period of 8 years?

Introduction / Context:
This is a straightforward simple interest problem. You are given the principal, rate and time, and must compute the interest. Such questions are foundational in finance and aptitude tests, verifying that you know and can apply the simple interest formula quickly and accurately.

Given Data / Assumptions:
- Principal P = Rs. 2,500.
- Rate r = 12% per annum.
- Time t = 8 years.
- Interest is simple interest (no compounding).
- We must find the simple interest earned over this period.

Concept / Approach:
The standard simple interest formula is:
S.I. = P * r * t / 100.
Under simple interest, the interest is proportional to time and principal, and the principal does not change over the years (no interest-on-interest). Here, we simply substitute the given values into the formula and compute the result.

Step-by-Step Solution:
Step 1: Write the formula: S.I. = P * r * t / 100.Step 2: Substitute P = 2500, r = 12, t = 8.Step 3: Compute: S.I. = 2500 * 12 * 8 / 100.Step 4: First multiply 12 * 8 = 96.Step 5: So S.I. = 2500 * 96 / 100.Step 6: Simplify 96 / 100 = 0.96.Step 7: Therefore, S.I. = 2500 * 0.96 = 2400.Step 8: The simple interest obtained is Rs. 2,400.

Verification / Alternative check:
You can think of it as 12% interest each year. Per year, interest = 12% of 2500 = 0.12 * 2500 = 300. Over 8 years, total interest = 300 * 8 = 2400. This matches the formula-based calculation and confirms the answer.

Why Other Options Are Wrong:
Rs. 2,200 and Rs. 2,300 are close guesses but correspond to incorrect use of either rate or time (for example, using 11% or 7.33 years). Rs. 2,500 would imply 12.5% per year or different parameters. Rs. 1,800 comes from fewer years or a lower rate. Only Rs. 2,400 fits the exact formula with the given data.

Common Pitfalls:
Students sometimes mistakenly use the compound interest perspective here, or they mis-multiply the numbers (especially 12 × 8). Always double-check multiplications and ensure you divide by 100 correctly when applying percentages. Keeping track of units (rupees and years) helps maintain clarity.

Final Answer:
The simple interest on Rs. 2,500 for 8 years at 12% per annum is Rs. 2,400.