What is the simple interest on rupees 2500 for 3 years at 5% per annum?

Okay, so someone asked what the simple interest would be on ₹2500 for 3 years at a 5% interest rate. Let me see… how would I explain this in a way that makes sense?

Okay, so basically, you’ve got ₹2500. Think of it like you’re lending it out, or maybe you put it in a super basic savings account. And for every year, you get 5% of that original ₹2500 back as interest. Simple interest, get it? It’s simple!

Now, how much is 5% of ₹2500? Well, you can do it in your head, or you can grab a calculator like I probably would. But basically, it’s ₹125 each year (because 5/100 * 2500 = 125).

But we’re not just talking about one year, are we? We’re talking about three whole years! So, you get that ₹125 every single year for three years. So you’re looking at 3 * ₹125.

And that comes out to… ₹375! So after three years, you’d have earned ₹375 in simple interest. Not bad, right? I mean, it’s not going to make you rich, but hey, it’s something!

So yeah, the simple interest on ₹2500 for 3 years at 5% per annum is ₹375. Basically, you just multiply the original amount (that’s the ₹2500), by the interest rate (5%), and then by the number of years (3). I hope that makes sense, it’s honestly not that hard when you break it down.