What is the simple interest on Rs. 2500 at the rate of 12 percent per annum for 8 years?

Introduction / Context:
Although this question appears in the compound interest category, it specifically asks for simple interest on a given principal at a stated rate and time period. Simple interest grows linearly with time and is easy to compute using the basic formula. This problem checks whether you can correctly apply that formula and handle straightforward percentage calculations.

Given Data / Assumptions:

• Principal P = Rs. 2500.
• Rate r = 12 percent per annum.
• Time t = 8 years.
• We are asked for simple interest only.

Concept / Approach:
The simple interest formula is: SI = P * r * t / 100 We substitute P = 2500, r = 12, and t = 8. Since the rate is per annum and time is given in years, no unit conversions are needed. We then multiply and divide carefully to obtain the correct interest amount.

Step-by-Step Solution:
P = 2500, r = 12 percent, t = 8 years SI = 2500 * 12 * 8 / 100 First multiply 12 * 8 = 96 So SI = 2500 * 96 / 100 2500 * 96 = 240000 240000 / 100 = 2400 Therefore, the simple interest is Rs. 2400

Verification / Alternative check:
We can also think of this as 12 percent of 2500 each year for 8 years. Twelve percent of 2500 is: 0.12 * 2500 = 300 Over 8 years, interest at 300 per year gives: 300 * 8 = 2400 This matches the result from the direct formula and confirms the answer.

Why Other Options Are Wrong:
2200 and 2300 are too low and would correspond to smaller annual interest or fewer years. 2500 is larger than the correct value and would correspond to a slightly higher effective rate than 12 percent. 2600 is even larger and clearly inconsistent with multiplying 300 by 8. The only value that matches both the formula and the logical reasoning is 2400.

Common Pitfalls:
Errors can occur if students mistakenly use the compound interest formula or mis multiply 12 and 8. Some may forget to divide by 100 or misplace the decimal point when converting the percentage. Confusing the final amount with the interest and answering with 2500 + 2400 = 4900 is another possible mistake. Careful reading of the question and stepwise substitution into the simple interest formula help avoid such problems.

Final Answer:
The simple interest on Rs. 2500 at 12 percent per annum for 8 years is Rs. 2400.