Question

What is the interest for 16,000 rupees at $12\frac{1}{2}\%$ for one year? What would be the interest if the rate of interest is only $6\frac{1}{4}\%$.

Answer 1

Principal, $P=Rs.16000$

Rate of interest, $R_1=12\frac{1}{2}\%=\frac{25}{2}\%$

Time, $T=1$ year

Simple interest $=\frac{P\times R\times T}{100}$

$=\frac{16000\times 25\times 1}{100\times 2}$

$=Rs.2000$

Rate of interest, $R_2=6\frac{1}{4}\%=\frac{25}{4}\%$

Simple interest $=\frac{16000\times 25\times 1}{100\times 4}$

$=Rs.1000$

$\therefore$ Interest for one year at $12\frac{1}{2}\%=Rs.2000$

Interest for one year at $6\frac{1}{4}\%=Rs.1000$