Question

What will be the simple interest on the sum of Rs. 16000 for 15 months at an annual rate of 12.5%?
1. Rs. 2000
2. Rs. 2500
3. Rs. 2650
4. Rs. 3050

Answer 1

Correct Answer - Option 2 : Rs. 2500

Given:

Principal = Rs. 16000

Rate of interest = 12.5% per annum

Time = 15 months

Formula Used:

S.I = PRT/100

Where,

S.I = Simple interest

P = Principal

R = Rate of interest per annum

T = Time duration

Calculation:

According to the question, we have

S.I = (16000 × 15 × 12.5)/(100 × 12)

⇒ 2500

∴ The simple interest is Rs. 2500.