Rupesh 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 3 years?

The correct answer is 92400.

Step-by-Step Explanation:

1. Identify the given values from the problem:

Principal amount borrowed ($P$) = ₹4,40,000

Rate of interest per annum ($R$) = 7%

Time period in years ($T$) = 3 years

2. Formula for Simple Interest:

The formula to calculate simple interest is given by:

$\text{Simple Interest (SI)}=\frac{P\times R\times T}{100}$

3. Calculate the Simple Interest:

Substitute the given values into the formula:

$\text{SI}=\frac{440000\times 7\times 3}{100}$

Simplify the expression by dividing 4,40,000 by 100:

$\text{SI}=4400\times 7\times 3$

First, multiply 7 by 3:

$7\times 3=21$

Now, multiply 4400 by 21:

$\text{SI}=4400\times 21=92400$

Thus, the simple interest Rupesh will pay after 3 years is ₹92,400.