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Find the simple interest on Rs.27,000 at 14 2/3 % per annum for 8 months.
Rs.2,600
Rs.2,630
Rs.2,610
Rs.2,640
To determine the simple interest, we can use the formula:
Simple Interest=P×R×T100
Where:
- P = Principal amount (Rs. 27,000)
- R = Rate of interest per annum (14 2/3 % = 44/3 %)
- T = Time in years (8 months = 8/12 = 2/3 years)
Calculating further:
1. Convert the rate to a fraction: 14 2/3 % = 443%
2. Time in years: 812=23
Now substitute into the formula:
Simple Interest=27000×443×23100
Simple Interest=27000×44×23×3×100
Simple Interest=2376000900
Simple Interest=2640
So, the correct option is:
- Option 4: Rs.2,640
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