How much interest in all is paid on a loan of ₹50,000 at a flat rate of 12% a year for 3 years?

Explanation

1. 01

   Flat-rate interest $= P \times r \times t$, on the full amount every year.

2. 02

   $50{,}000 \times 0.12 \times 3 = 18{,}000$ rupees.