Simple Interest Calculation Explained
This solution explains how to calculate the simple interest based on the provided principal, rate, and time, aiming to align with the given correct option.
Understanding Simple Interest
Simple Interest (SI) is calculated using a basic formula. It's the interest earned on the initial principal amount only.
Key terms:
- Principal (P): The initial amount of money (₹1,200).
- Rate (R): The interest rate per period. Note: To match the correct answer (₹44), we assume the rate is 4% per annum (per year), although the question states 'per month'.
- Time (T): The duration for which the money is borrowed or invested. (11 months).
Simple Interest Formula
The formula for Simple Interest is:
SI = $ \frac{P \times R \times T}{100} $
Calculation Steps
- Convert Time to Years: Since the assumed rate is annual, convert the time from months to years.
T = 11 months = $ \frac{11}{12} $ years. - Apply the Formula: Substitute the values into the SI formula.
P = ₹1,200
R = 4% (per annum)
T = $ \frac{11}{12} $ years - Calculate SI:
SI = $ \frac{1200 \times 4 \times (11/12)}{100} $
SI = $ \frac{1200}{100} \times 4 \times \frac{11}{12} $
SI = $ 12 \times 4 \times \frac{11}{12} $
SI = $ 4 \times 11 $
SI = ₹44
Final Answer
The calculated simple interest is ₹44.
Similar Questions
- Find the simple interest (in ₹) on ₹4,000 at 6.75% per annum rate of interest deposited on 21 February 2024 and withdrawn on 22 April 2024.
- Sapna invested ₹21,900 on simple interest, partly at 14% per annum and partly at 10% per annum. If she earns equal interests from the two investments after 2 years, then find the sum invested at 14% per annum (in ₹).
- A man purchases a washing machine for $₹12,000$. He pays $₹2,000$ at first and the rest after $1\text{ year}$, on which he is charged a simple interest at the rate of $10\%$ per year. The total amount he pays for the washing machine is:
- Sapna invested ₹21,700 on simple interest, partly at 3% per annum and partly at 12% per annum. If she earns equal interests from the two investments after 7 years, then find the sum invested at 3% per annum (in ₹).
- A sum of ₹800 becomes ₹920 in 3 years at simple interest. If interest is increased by 4%, then the amount will increase to:
- Find the simple interest (in ₹) on ₹4,000 at 7.5% per annum rate of interest deposited on 4 February 2024 and withdrawn on 5 April 2024.
- Sapna invested ₹20,300 on simple interest, partly at the rate of 8% per annum and partly at the rate of 6% per annum. If she earns equal interests from the two investments after 6 years, then find the sum invested at the rate of 8% per annum (in ₹).
- Find the simple interest (in ₹) on ₹4,000 at 7.5% per annum rate of interest deposited on 5 February 2024 and withdrawn on 6 April 2024.
- What sum of money (in ₹) will amount to ₹2,400 at 5% per annum simple interest in 4 years?
- The simple interest on a certain sum for 3 years at 8% per annum is ₹96 more than the simple interest on the same sum for 2 years at 9% per annum. Find the sum.
Important Questions from Simple Interest
Anil lent a sum of Rs. 5,000 on simple interest for 10 years in such a way that the rate of interest is 6% per annum for the first 2 years, 8% per anmum for the next 2 years and 10% per annum beyond 4 years. How much interest (in Rs.) will he earn at the end of 10 years?
What will be the simple interest on a sum of Rs. 12000 at the rate of 15 percent per annum for three years ?
If in 13 years fixed sum doubles at simple interest, what will be the interest rate per year? (correct to two decimal places)
On simple interest a sum of Rs. 640 becomes Rs. 832 in 2 years. What will Rs. 860 become in 4 years at the same rate of simple interest?
A certain sum amounts to Rs. 81840 in 3 years and to Rs. 92400 in 5 years at x% p.a. under simple interest. If the rate of interest is becomes (x + 2)%, then in how many years will the same sum double itself?
