Ayesha borrows some money at a rate of simple interest of 12% per year.This means that on every ₹ borrowed, ₹12 is the interest she has to pay in a year.

The statement is incorrect. A 12% simple interest rate means that for every ₹100 borrowed, Ayesha would have to pay ₹12 as interest in a year, not for every ₹1 borrowed.

Here's how it works:

1. The principal amount (P) is the original amount of money that Ayesha borrows.

2. The rate of interest (r) is 12% per year. This is usually expressed as a decimal in calculations, so r = 0.12.

3. The time (t) is the number of years for which the money is borrowed.

4. The simple interest (I) is calculated as I = Prt.

So, if Ayesha borrows ₹1000 for 1 year, the interest she would have to pay would be I = 10000.121 = ₹120.