A sum of Rs 400 is lent for 3 years at the rate of 6% per annum. Find the interest.
Principal amount P = Rs 400
Time ** T = 3 years
Rate of interest R = 6% p.a.
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (400 × 3 × 6)/100
= Rs 72
