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.
Question
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.
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: 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: Calculating this:
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.
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