Question

What will be the simple interest earned on an amount of rs.16,800 in 9 months at the rate of 6 1/4% p.A?

Answer 1

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:

$\mathbf{SI = PNR}$

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 $\frac{9}{12}$.

Substituting the value of N above and the other values from the question we get,

$\mathbf{SI = 16800* \frac{9}{12}* \frac{6.25}{100}}$

Solving we get,

$\mathbf{SI = 787.5}$

Answer 2

We can take the principal amount P  as Rs. 16, 800

The rate of interest is 6 ¼%

The number of months is 9 months, so N is 9/12

The formula to calculate simple interest is given below.

SI = PNR/100

Now, we need to substitute the values in a formula,

SI = 16800 X 9/12 X 6.25 /100

After solving, we can get the value of SI as 787.5