Question

What will be the simple interest on a sum of ₹ 1820 from March 12, 2003 to May 23, 2003 at 7.5% rate?

• A. Rs 37.70
• B. Rs 42.50
• C. Rs 27.30
• D. Rs 15.20

Answer 1

The correct option is C

Rs 27.30

Number of days between March 12 to March 31 = 20 days

Number of days between April 1 to April 30 = 30 days

Number of days between May 1 to May 23 = 23 days

Hence Total Time of the deposit = (20 + 30 + 23) days

= 73 days

=$\frac{73}{365}$ ( since the time period is taken in years while calculating Simple Interest )

=$\frac{1}{5}$ year

Interest = $\frac{(P\times R\times T)}{100}$

S.I. = 1820$\times$ $\frac{15}{2}$ $\times$$\frac{1}{5}$ $\times$ $\frac{1}{100}$

= ₹ 27.30

Hence, the simple interest is ₹ 27.30.