What will be the simple interest earned on an amount of Rs. 4,800 at 8.5 p.c.p.a., at the end of 2 years 3 months?
Solution
Correct Answer: Option E
Let the simple interest be Rs. x
Principal sum = Rs. 4,800
Rate of interest = 8.5% p.a. = 17/2 % p.a.
Time period = 2 years 3 months = \(2\frac{3}{{12}}\) year = 9/4 year
\({\rm{S}}.{\rm{I}}.{\rm{\;}} = \frac{{P\; \times R\; \times T}}{{100}}\)
\(\Rightarrow {\rm{S}}.{\rm{I}}.{\rm{\;}} = \frac{{4800\; \times \frac{{17}}{2}\; \times \frac{9}{4}}}{{100}}\)
Thus, S.I.= Rs. 918
Therefore, the simple interest = Rs. 918.
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