Question

If the simple interest is increased from 8% to 8.5% per annum, then the increased annual income of the deposited amount of Rs 40, 000 will be: ​

Answer 1

Answer:

Principal = Rs. 4800

Rate = 8.5%

Time = 2 years 3 months = 2 + (3/12) = 2 + (1/4) = 9/4 = 2.25 years

Formula used:

Simple Interest = (Principal × Rate × Time)/100

Calculation:

Simple Interest = (4800 × 8.5 × 2.25)/100 = Rs. 918

∴ The correct answer is Rs. 918.