UGC NET Questions (Paper – 1)

Simple interest is calculated using the formula I = PRT/100, where P is principal, R is rate and T is time in years. Substituting P = 5000, R = 8 and T = 3 gives I = 5000 × 8 × 3 / 100 = 5000 × 24 / 100 = 1200. This shows that the total interest earned over 3 years is ₹1200. Hence, 1200 is the correct answer.

Option A:
An interest of ₹1000 would correspond to different values of rate or time, such as 5000 × 5 × 4 / 100, and does not match the given data. If we plug 5000, 8% and 3 years into the formula, we do not obtain 1000. Therefore, this option is inconsistent with the standard simple interest calculation.

Option B:
₹1100 is close to the correct value but still underestimates the interest. It might result from an incorrect intermediate step or rounding, but simple interest at whole percentages with these numbers does not require rounding. Since the exact formula gives ₹1200, this option is incorrect.

Option C:
₹1150 again does not align with the precise formula I = PRT/100. No simple substitution of P=5000, R=8 and T=3 yields 1150 as the result. Therefore, this value cannot be justified mathematically in this context.

Option D:
₹1200 is correct because the multiplication 5000 × 8 × 3 equals 120000, and dividing by 100 gives 1200. This straightforward computation demonstrates the direct application of the simple interest formula. In exam settings, carefully performing such calculations avoids avoidable errors.