Find the simple interest on ₹36,000 at an annual rate of 22% over an 8 month period.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e ₹5,280.
Simple Interest = (Principal × Rate × Time) ÷ 100
Principal = 36,000‚ Rate = 22% per year and Time = 8 months = 8/12 year = 2/3 year
SI = (36,000 × 22 × 2/3) ÷ 100 = (36,000 × 44 ÷ 3) ÷ 100
⇒ (15,84,000 ÷ 3) ÷ 100 = 5,28,000 ÷ 100 = ₹5,280