Question

At the rate of 8.5% p.a. simple interest a sum of Rs. 4800 will earn how much interest in 2 years 3 months?
1. Rs. 816
2. Rs. 796
3. Rs. 918
4. Rs. 956

Answer 1

Correct Answer - Option 3 : Rs. 918

Given:

Principal = Rs. 4800

Rate =  8.5%

Time = 2 years 3 months = 2 + (3/12) = 2 + (1/4) = 9/4 = 2.25 years

Formula used:

Simple Interest = (Principal × Rate × Time)/100

Calculation:

Simple Interest = (4800 × 8.5 × 2.25)/100 = Rs. 918

∴ The correct answer is Rs. 918.