What is the simple interest on a sum of ₹99,000 at $12\frac{1}{2}$ per annum for a period of 9 months?
Answer & explanation
Correct answer: option 4
9 months = \(\frac{3}{4 }\) years
Rate = 12 \(\frac{1}{2 }\)% = \(\frac{25}{2}\)%
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
= \(\frac{99000 ×25 × 3 }{2 × 4× 100}\)
= Rs. 9281.25