Simple interest is calculated on the principal amount for a given time period at a given rate of interest. The formula for calculating Simple Interest is as follows:
SI = (P x R x T)/100
Where,
SI = Simple Interest
P = Principal Amount
R = Rate of Interest
T = Time Period
In this question, the principal amount is Rs 9125, the rate of interest is 4% p.a. and the time period is from April 5, 1987 to August 10, 1987.
Now, we will convert the time period from months to years and calculate the simple interest.
Time Period in Years = (August 10, 1987 – April 5, 1987) / 12
Time Period in Years = 4/12
Time Period in Years = 0.33
Therefore, the Simple Interest on Rs 9125 at 4% p.a. for 0.33 years is:
SI = (9125 x 4 x 0.33)/100
SI = Rs 127
Hence, the Simple Interest on Rs 9125 at 4% p.a. from April 5, 1987 to August 10, 1987 is Rs 127.
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