Question

Fill in the blanks to make the statement true: Interest on $₹12500$ at $18\%$ per annum for a period of $2$ years and $4$ months is ________

Answer 1

Find the interest amount based on given information

Given, principle amount $p=12500$

rate of interest $r=18\%$

the time period in years,

$\begin{array}{rcl}\mathrm{t}& =& 2\mathrm{years}4\mathrm{months}\\ & =& \left(2+\left(\frac{4}{12}\right)\right)\\ & =& \left(2+\frac{1}{3}\right)\\ & =& \frac{7}{3}\mathrm{years}\end{array}$

We need to calculate the interest, so to find the interest we use the below formula,

$\mathrm{Interest}=\frac{\mathrm{p}\times \mathrm{t}\times \mathrm{r}}{100}$

where, $p$ is the principle amount

$t$ is the time period

$r$ is the rate of interest

By using the above formula, we get,

$$\begin{gathered} \mathrm{Interest}=\frac{12500\times 18\times {\displaystyle \frac{7}{3}}}{100} \\ =\frac{125\times 18\times 7}{3} \\ =125\times 6\times 7 \\ =5250. \end{gathered}$$

Hence, interest on $₹12500$ at $18\%$ per annum for a period of $2$ years and $4$ months is $₹5250$.