Question

Find Simple interest and amount on:

₹ 4,000 in 1 1/3 years at 2 paise per rupee ​​​​​​ per month

Answer 1

Principal=P = Rs 4000
Time=T = 4/3 years
Rate of interest=R = 2 paise per rupee(100 paise) per month = 2% monthely = 2×12 = 24 % annual

Simple interest = (P x T x R) / 100
= (4000 x 4/3 x 24) / 100
= Rs 1280.
Amount = principal + interest
= 4000 + 1280
= 5280.