Correct Answer - Option 1 : Rs.840
Given
Principal = Rs.18,000; Rate = 7% per an um ; Time = 8 months
Formula used
Simple interest = (p × r × t)/100
Where p, r and t are principal, rate of interest and time.
Concept
When time is given in months it is converted into year by dividing the given months by 12
Calculation
Simple interest = (18,000 × 7 × 8)/(100 × 12)
⇒ Rs.840
∴ The simple interest is Rs.840.
