What will be the simple interest earned on an amount of ₹22000 in 8 months at \(8\frac{1}{4}\)% interest per annum?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹ 1210
Simple interest is \(\text{SI}=\frac{P\times R\times T}{100}\), with the rate per annum and the time in years, so 8 months is turned into years first.
\(P=22000\), \(\displaystyle R=8\frac{1}{4}=\frac{33}{4}\)% per annum
Time \(\displaystyle T=\frac{8}{12}=\frac{2}{3}\) year
Interest \(\displaystyle \text{SI}=\frac{22000\times33\times2}{4\times3\times100}=\frac{1452000}{1200}=1210\)