Given Principal = Rs 4500, Rate of Interest = 4% per annum and Time = 6 months = ½ years
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (4500 × ½ × 12.5)/100
SI = (4500 × 1 × 12.5)/100 × 2
= Rs 90