8% simple annual interest for 21 months at ₹ 1000
How much interest will be charged at the rate?
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Solution!!
The concept of simple interest has to be used here. The principal, rate of interest and time is given in the question. According to the question, we are asked to find the simple interest.
Principal = Rs 1000
Rate of interest = 8%
Time = 21 months
We have to convert months into years.
1 month = 1/12 year
21 months = 21/12
21 months = 1.75 years
Time = 1.75 years
Now, let's use an appropriate and suitable formula to calculate the simple interest.
SI = (P × R × T)/100
SI = (1000 × 8 × 1.75)/100
SI = 10 × 8 × 1.75
SI = Rs 140
Hence, the simple interest is Rs 140.
Abbreviations used:-
P → Principal
R → Rate of interest
T → Time
SI → Simple interest
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