Question

How much is the simple interest earned on Rs 75 for 3 months at 8 p.c.p.a?

Answer 1

Principle is Rs 75
Rate is 8% p. a
Time is 3 months
So, Simple interest = P*R*T /100
S. I. = 75 * 8 * 0.25 /100
S. I. = 150/100
S. I. = Rs 1.50

Answer 2

Given:

The principle rate or amount = Rs 75

Time period for interest = 3 months

Rate per annum = 8%

To find:

The simple interest for the given amount =?

Solution:

• The simple interest can be found by following formula:

=> Simple interest (Rs) = initial principle balance × rate of interest (per annum) × time in years

=> Time = 3 months (given)

=> Time in years = $\frac{3}{12}$ years

=> Time in years = $\frac{1}{4}$ years

=> Simple interest = Rs 75 × 8% × $\frac{1}{4}$ years

=> Simple interest = Rs 75 × $\frac{8}{100}$ × $\frac{1}{4}$ years

=> Simple interest = $\frac{600}{400}$

=> Simple interest = Rs 1.5

Hence, the simple interest earned is Rs 1.5.