Question

If the rate of simple interest is 12 ½ % per annum, what fraction of the Principal is the interest at the end of the first year?​

Answer 1

Step-by-step explanation:

if I invest 100 rs. for a year @12.5%, I will be getting 12.5 rs. as interest

fraction = 12.5/100 = 1/8

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Answer 2

GIVEN,

Rate of interest= 12.5 %.

TO FIND,

fraction of the Principal is the interest at the end of the first year

SOLUTION,

Let the principal be 100. and we are given that the rate of interest is 12.5% per year.

so when we calculate the simple interest using the formula,

$SI=\frac{P*R*T}{100}$

let us substitute the values, we get,

$SI=\frac{100*12.5*1}{100}$

simplifying,

SI= 12.5

therefore the fraction of principal= $\frac{12.5}{100}$

Evaluating, we get finally   = $\frac{1}{8}$

HENCE THE FRACTION OF PRINCIPAL AT THE END  OF THE FIRST YEAR IS $\frac{1}{8}$.