Question

What will be the interest on Rs 5000 at 10% per annum on simple interest for the period from 4th June 2021 to 16th august 2021.

1. Rs 100
2. Rs 150
3. Rs 120
4. Rs 125

Answer 1

Correct Answer - Option 1 : Rs 100

Given 

Principal = Rs 5000 

Rate = 10% 

Formula Used 

Simple Interest = Principal × Rate × time/100

Calculation

⇒ Total time = (26 + 31 + 16) = 73 days

⇒ Time in year = 73/365 = 1/5 year

⇒ Let the interest be x 

⇒ x = (5000 × 10 × 1)/(5 × 100)

⇒ x = Rs 100

∴ The interest is Rs. 100