Kiran has borrowed an amount of ₹4,40,000 from a bank to start a business. How much simple interest (in ₹) will he pay at a rate of 7% per annum after 2 years?

The correct answer is 61600 (Option 3).

Step 1: Identify the given values from the problem:
Principal amount ($P$) = ₹4,40,000
Rate of interest ($R$) = 7% per annum
Time period ($T$) = 2 years

Step 2: Formula for Simple Interest:
The formula to calculate Simple Interest ($SI$) is given by:

$SI=\frac{P\times R\times T}{100}$

Step 3: Substitute the given values into the formula:

$SI=\frac{440000\times 7\times 2}{100}$

Step 4: Perform the calculation:
Simplifying the expression by canceling out the zeros:

$SI=4400\times 7\times 2$

$SI=4400\times 14$

$SI=61600$

Thus, Kiran will pay a simple interest of ₹61,600 after 2 years.