Question

How much simple interest earned at rs.75 for 3 months at 8%p.a.

Answer 1

The simple interest earned at Rs 75 for 3 months at 8% p.a is Rs.1.5

Step-by-step explanation:

Simple interest is a fast and convenient way to figure out how much money you owe on a loan or the amount you get after you lend a certain amount to someone.

To calculate simple interest we use the formula;

$Simple\ Interest = \frac{Principal*Rate*time}{100}$

Given:

Principal: Rs 75

Time: 3 Months  $= \frac{3}{12}$  years

Rate: 8% p.a

Substituting:

$Simple\ Interest = \frac{75*8*3}{12*100}$

$Simple\ Interest = Rs. 1.5$

The simple interest earned is Rs.1.5.