Question

Find the simple interest on the Rs. 2000 at 25/4% per annum for the period from 4^th Feb to 18^th April 2005
1. Rs. 25
2. Rs. 30
3. Rs. 35
4. Rs. 40

Answer 1

Correct Answer - Option 1 : Rs. 25

Given:

Principal = Rs. 2000

Rate = 25/4%

Concept used:

We will not count the day when the money is deposited we will only count the day when the money is withdrawn.

We have divided by 365 as we converted 73 days in a year.

Formula used:

S.I = (P × R × T)/100

Where, S.I = Simple interest, R = Rate %, T = Time

Calculation: 

We will calculate the number of days,

Time = (24 + 31 + 18) days = 73/365 years = 1/5 years

According to the question:

S.I = (P × R × T)/100

⇒ S.I = [2000 × (25/4) × (1/5)]/100

⇒ S.I = 25

∴ The simple interest is Rs. 25.