Question

Calculate the interest on $Rs.800$ at $6\frac{1}{2}$% per annum, for $3\frac{1}{2}$ years

Answer 1

Given: $P=Rs.800;T=3\frac{1}{2}years=\frac{7}{2}years;R=6\frac{1}{2}$% $=\frac{13}{2}$%.

We use the formula for I;
$I=\frac{PTR}{100}=\frac{800\times \left(7/2\right)\times \left(13/2\right)}{100}$

$=2\times 7\times 13=182$.
Thus the interest is $Rs.182$.