What will be the simple interest earned on an amount of Rs.16,800 in 9 months at the rate of 6 ¼ % p.a.?

A Rs.787.50

B Rs.812.50

C Rs.860

D Rs.887.50

E None of these

Correct Answer: Option A

9 months = 9/12 years = 3/4th year = 0.75 year

We know that simple interest = PRT/100

Where P is the principle amount, R is the rate of interest and T is the number of years.

Simple Interest = (16800×6.25 × 0.75)/100 = Rs.787.50