The simple interest of Rs 6500 for \(1\displaystyle\frac{1}{2}\) years at 10% is
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 975
Simple interest is worked out on the original sum only, so it is the same every year: \(\displaystyle \text{SI}=\frac{P\times R\times T}{100}\), with the principal P, the rate R per cent a year and the time T in years.
The time in years: \(\displaystyle 1\frac{1}{2}\) years \(=1.5\) years
Interest on Rs 6500 at 10%: \(\displaystyle \text{SI}=\frac{6500\times10\times1.5}{100}=\) Rs 975