What will be the simple interest earned on an amount of 16800 in 9 months at the rate
of 64
1% p.a.?
Answers
Answer:
Answer: The simple interest earned on an amount of Rs. 16,800 in 9 months at 6 1/4% is Rs. 787.50
We follow these steps to arrive at the answer.
The formula for calculating the simple interest is:
\mathbf{SI = PNR}SI=PNR
where
SI is simple interest
P refers to the Principal or the amount lent out
N refers to the number of years for which the principal is lent
R refers to the interest rate on the loan.
In this question, since the principal earns interest over a period less than one year, we can express the period(N) as a fraction of a year.
Specifically, we can express N as \frac{9}{12}
12
9
.
Substituting the value of N above and the other values from the question we get,
\mathbf{SI = 16800* \frac{9}{12}* \frac{6.25}{100}}SI=16800∗
12
9
∗
100
6.25
Solving we get,
\mathbf{SI = 787.5}SI=787.5