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Suhani takes a loan of ₹65,000 at a rate of simple interest of 6% per year. Thus, at the end of the year, she will pay ₹ as interest.

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Question

Suhani takes a loan of ₹65,000 at a rate of simple interest of 6% per year. Thus, at the end of the year, she will pay ₹ as interest.

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Solution

1. ### Break Down the Problem

To find the interest Suhani will pay at the end of the year, we need to use the formula for simple interest: Interest (I)=Principal (P)×Rate (R)×Time (T) \text{Interest (I)} = \text{Principal (P)} \times \text{Rate (R)} \times \text{Time (T)} Where:

  • Principal (P) = ₹65,000
  • Rate (R) = 6% per annum = 0.06
  • Time (T) = 1 year

2. ### Relevant Concepts

The formula for calculating simple interest is crucial in this problem. It allows us to multiply the principal amount by the interest rate and the duration of the loan to find the total interest payable.

3. ### Analysis and Detail

Now, we substitute the values into the formula: I=65,000×0.06×1 I = 65,000 \times 0.06 \times 1 Calculating this:

I=65,000×0.06=3,900 I = 65,000 \times 0.06 = 3,900

4. ### Verify and Summarize

The calculation shows that the interest Suhani will pay at the end of the year is ₹3,900.

Final Answer

Thus, at the end of the year, Suhani will pay ₹3,900 as interest.

This problem has been solved

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