Question

The simple interest on Rs. $1800$ at $3\frac{1}{2}$% per annum for $2\frac{1}{2}$ years is

• A. Rs. $157.50$
• B. Rs. $154.50$
• C. Rs. $156.50$
• D. none

Answer 1

The correct option is A Rs. $157.50$

$\Rightarrow$ We have, Principle $\left(P\right)=Rs1800$

Rate of interest $\left(R\right)=3\frac{1}{2}\%=\frac{7}{2}\%$

Time period $\left(T\right)=2\frac{1}{2}=\frac{5}{2}$

The formula to calculate simple interest:

$\Rightarrow$ $\text{Simple Interest}=\frac{P\times R\times T}{100}$

$=1800\times \frac{7}{2}\times \frac{5}{2}\times \frac{1}{100}$

$=\frac{630}{4}=Rs.157.50$