Rate of interest = 12% per year. What does it means?
A) On every Rs 100 borrowed, Rs 10 is the interest to be paid for one year.
B) On every Rs 1000 borrowed, Rs 12 is the interest to be paid for one year.
C) On every Rs 100 borrowed, Rs 12 is the interest to be paid for one year.
D) none
Answers
Answer:
Let the principal amount be equal to P. Let the rate at which the interest is levied is equal to R% per annum (per year). let the time for which the amount is lent = T years. Then we can write:
Simple Interest = [{P×R×T}/100]
We can also calculate the Principal amount as P = [{100×(Simple Interest)}/(R×T)].
Similarly, we can write the time T as equal to T = [{100×(Simple Interest)}/P×R].
Now let us solve some examples to get acquainted with these formulae.
Example 1: Find the simple interest on Rs. 68,000 at 16(2/3)% per annum for a period of 9 months?
A) Rs. 8500 B) Rs. 3200 C) Rs. 2100 D) Rs. 4300
Answer: Here, P = Rs. 68000, R = 50/3% per annum and T = 9/12 years = 3/4 years. Note that the time has been converted into years as the rate is per annum. The units of rate R and the time T have to be consistent. Now using the formula for the simple interest, we have:
S.I. = [{P×R×T}/100]; therefore we may write: S.I. = Rs. [68000×(50/3)×(3/4)×(1/100)] = Rs. 8500.
In some cases the days of the start and the days when we calculate the interest are present. We don’t count the day on which we deposit the money. However, we do count the day on which we withdraw the money.
Step-by-step explanation:
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Answer:
D) None..................