Given: – P = ₹ 2650, R = 8% p.a. and time = 2 ½ years = (5/2)
If interest is calculated uniformly on the original principal throughout the loan period, it is called simple interest.
SI = (P × R × T)/100
= (2650 × 8 × (5/2))/ 100
= 2650 × 8 × (5/2) × (1/100)
= (2650 × 8 × 5 × 1)/ (2 × 100)
= (2650 × 4 × 1 × 1)/ (1 × 20)
= (2650 × 1 × 1 × 1)/ (1 × 5)
= (2650 / 5)
= ₹ 530
Amount = (principal + SI)
= (2650 + 530)
= ₹ 3180