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A sum of ₹ 80,000 is invested at 6% p.a. at simple interest for the first year, then 8% p.a. for the next 2 years (still simple interest). What is the total interest earned over the 3 year period?

Solution

✅ Correct Option: 2

Interest for year 1 =80000×6×1100=4800= \frac{80000 \times 6 \times 1}{100} = 4800.

Interest for the next 2 years =80000×8×2100=12800= \frac{80000 \times 8 \times 2}{100} = 12800.

Total =4800+12800=₹17,600= 4800 + 12800 = ₹17,600.

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