Subjects finance

Simple Interest 01D2Ab

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1. **Problem:** Calculate the simple interest and the total amount after interest for a principal of 25000000 over 5 years at 12% per year. 2. **Formula:** Simple interest $I = P \times r \times t$ where $P$ is principal, $r$ is rate per year, and $t$ is time in years. 3. **Calculate interest:** $$I = 25000000 \times 0.12 \times 5 = 15000000$$ 4. **Calculate total amount:** $$A = P + I = 25000000 + 15000000 = 40000000$$ 5. **Answer:** Interest is 15000000 and total amount is 40000000, which corresponds to option E.