Given: – P = ₹ 1500, R = 12% p.a. and
Time = 3 years 3 months
We know that, 1 year = 12 months
∴ 3 years 3 months = (39/12) = (13/4)
If interest is calculated uniformly on the original principal throughout the loan period, it is called simple interest.
SI = (P × R × T)/100
= (1500 × 12 × (13/4))/ 100
= 1500 × 12 × (13/4) × (1/100)
= (1500 × 12 × 13 × 1)/ (4 × 100)
= (15 × 3 × 13 × 1)/ (1 × 1)
= (15 × 3 × 13 × 1)
= ₹ 585
Amount = (principal + SI)
= (1500 + 585)
= ₹ 2085
