Question

If the interest of Rs 1 per month is 5 Paisa, then the interest of Rs 500 in 8 months is​

Answer 1

Given,

The interest of Rs. 1 per month is 5 Paisa.

To find,

The interest of Rs. 500 in 8 months.

Solution,

This mathematical problem can be solved into two methods. (We have assumed that it's a simple interest.)

Method 1 :

Principal amount (p)= Rs. 500

Time (t) = 8 months

Rate (r) = 5 paisa per 1 rupee = 5 paisa per 100 paisa = 5% per month

Simple interest = prt/100 = (500×8×5)/100 = Rs. 200

Method 2 :

Interest for rs 1 in 1 month = 5 paisa

interest for rs 500 in 1 month = 500×5

Interest for rs 500 in 8 months = 500×5×8 = 20000 pasia = rs. 200

(First method is more preferable.)

Hence, the interest is Rs. 200