**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