Question

M sold goods worth 50,000 to N on 1.1.15. N immediately accepted a three months bill on due date
requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in con
How much interest to be paid in cash by N?
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Answer 1

Answer:

₹ 2250.00

Explanation:

You have to just calculate it by the method of simple interest.

SI = P x R x N / 100

P = 50,000

R = 18 ℅

N = 3 Months, but as the rate of Interest is in per annum.

we have to make it by dividing it

.*. 3/12 = 1/4 = 0.25

.*. = 50000 x 18 x 0.25 / 100

.*. = 500 x 18 x 0.25

.*. = 9000 x 0.25

.*. = 2250.00

I hope this will help you..