1.

Find the interest on Rs.18,000 at 7% per annum for 8 months.1. Rs.8402. Rs 5403. Rs.6404. Rs 140

Answer» Correct Answer - Option 1 : Rs.840

Given

Principal = Rs.18,000; Rate = 7% per an um ; Time = 8 months

Formula used

Simple interest = (p × r × t)/100

Where p, r and t are principal, rate of interest and time.

Concept

When time is given in months it is converted into year by dividing the given months by 12

Calculation

Simple interest = (18,000 × 7 × 8)/(100 × 12)

⇒  Rs.840

∴ The simple interest is Rs.840.



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