Question

Find the simple interest on ₹36,000 at an annual rate of 22% over an 8 month period.

• A. ₹4,640
• B. ₹5,000
• C. ₹6,000
• D. ₹5280

Answer 1

Answer:

D. ₹5280

Given:

• Principal (P = 36{,}000)

• Rate (R = 22%) per annum

• Time (T = 8) months (= \frac{8}{12} = \frac{2}{3}) years

  Simple Interest formula:

$\text{SI} = \frac{P \times R \times T}{100}$
$= \frac{36{,}000 \times 22 \times \frac{2}{3}}{100}$
Step-by-step:

$36{,}000 \times 22 = 7{,}92{,}000$
$7{,}92{,}000 \times \frac{2}{3} = 5{,}28{,}000$
$\frac{5{,}28{,}000}{100} = 5{,}280$