The simple interest earned on a principal of Rs 1600 at the rate of 5% per annum for a period of 6 years is to be calculated. Using the standard simple interest formula, what will be the amount of simple interest earned over these 6 years?

Introduction / Context:
This is a direct computation problem on simple interest. The principal, rate, and time are all given explicitly, and the task is simply to apply the simple interest formula correctly. Such problems are common in the early part of quantitative aptitude sections and serve to check the candidate’s accuracy with basic percentage calculations and multiplication. Even though the calculation is simple, exam pressure can cause mistakes, so a clear step-by-step approach is recommended.

Given Data / Assumptions:

• Principal P = Rs 1600.
• Rate of interest R = 5% per annum.
• Time period T = 6 years.
• Interest is calculated using simple interest throughout.

Concept / Approach:
The formula for simple interest is:
SI = (P * R * T) / 100 Here P is the amount of money invested or borrowed, R is the annual rate of interest in percent, and T is the time in years for which the money is invested or borrowed. After computing the simple interest, one can also find the final amount if needed by adding the simple interest to the principal, but the question here asks only for the interest amount.

Step-by-Step Solution:
Principal P = Rs 1600. Rate R = 5% per annum. Time T = 6 years. Use the formula SI = (P * R * T) / 100. SI = (1600 * 5 * 6) / 100. First compute 5 * 6 = 30. So SI = (1600 * 30) / 100. 1600 * 30 = 48000. SI = 48000 / 100 = 480. Therefore, the simple interest earned over 6 years is Rs 480.

Verification / Alternative check:
We can check the result by reasoning yearly. At 5% per annum, yearly interest on Rs 1600 is 5% of 1600, which is (1600 * 5) / 100 = 80. Over 6 years, simple interest equals 80 * 6 = 480. This matches the earlier calculation, confirming that Rs 480 is correct.

Why Other Options Are Wrong:
Rs 2080 is much larger than the principal and would require a higher rate or longer time period.
Rs 450, Rs 496, and Rs 520 are all different from the exact calculated value of Rs 480 and do not correspond to correct application of the formula with the given inputs.

Common Pitfalls:
Common mistakes include forgetting to divide by 100 after multiplying P, R, and T, or miscalculating the product 1600 * 30. Some candidates might also incorrectly use compound interest logic for a simple interest question. Carefully writing down the formula and substituting the values step by step helps to avoid these errors and ensures accuracy, even under exam conditions.

Final Answer:
The amount of simple interest earned over 6 years is Rs 480.