Question

8% simple annual interest for 21 months at ₹ 1000

How much interest will be charged at the rate?​

Answer 1

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