Question

Find the simple interest on Rs. 20,000 at $16\frac{2}{3}$% per annum for a period of 9 months?

• A. ₹ 2,500
• B. ₹ 2,000
• C. ₹ 4,000
• D. ₹ 8,000

Answer 1

The correct option is A ₹ 2,500

Given, P = ₹ 20,000,
R = $16\frac{2}{3}=\frac{50}{3}$% p.a
and T = $\frac{9}{12}$ years = $\frac{3}{4}$ years.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R % p.a S.I is given by $\frac{P\times R\times T}{100}$.

Hence, the simple interest earned =
$\frac{₹20,000\times \frac{50}{3}\times \frac{3}{4}}{100}$ = $\frac{20,000\times 50\times 3}{3\times 4\times 100}$ = ₹ 2500
Hence the simple interest earned is ₹ 2500