Find the simple interest on Rs. 4000 at 7.5% p.a. for 3 years 3 months. Also, find the amount.

Solution:

Given principal, P = Rs. 4000

Rate of interest, R = 7.5%

Time, T = 3 years 3 months = 3 + (¼)

= 13/4 years

Simple interest, I = PRT

= 4000 ×(7.5/100)×13/4

= Rs. 975

Amount = P+I

= 4000 + 975

= Rs. 4975