Ali took a loan of Rs 50000 at 9 percent rate of interest for 2 years at simple interest to renovate his house. How much extra amount he pays in 2 years

Simple interest is calculated using the formula Interest equals Principal multiplied by Rate multiplied by Time divided by 100. Substituting values gives Interest equals 50000 multiplied by 9 multiplied by 2 divided by 100. This equals 9000. Therefore Ali will pay Rs 9000 as extra amount over 2 years. Simple interest problems are common in exams as they test understanding of percentage and arithmetic operations. The concept also has practical use in banking finance and daily life. Knowing how to calculate interest helps in managing loans deposits and investments. The correct answer is option D which is Rs 9000.