Question

Calculate simple interest on Rs.20000 for 3 1/2 years at 6 % rate of p.a. ?​

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. We have to find the interest.

Principal (P) = Rs 20,000

Rate of interest (R) = 6%

Time (T) = 3½ years = 7/2 years

Let's find the interest.

Interest = (P × R × T)/100

Interest = (20000 × 6 × (7/2))/100

Interest = 200 × 6 × (7/2)

Interest = 100 × 6 × 7

Interest = Rs 4200

Hence, the interest is Rs 4200.

The questioner may ask you to find the amount also. So, here's how you can find it.

Amount = Principal + Interest