Ravi lent out Rs.9600 at 8.5% per annum for a year 2 years 6 months.At the end of the duration,what amount he earned ?
Question
Solution
To calculate the amount Ravi earned, we need to use the formula for simple interest which is:
Interest = (Principal amount * Rate * Time) / 100
Here, the principal amount is Rs. 9600, the rate is 8.5% per annum, and the time is 2 years 6 months. But we need to convert the time into years, so 2 years 6 months becomes 2.5 years.
Now, substituting these values into the formula:
Interest = (9600 * 8.5 * 2.5) / 100 Interest = Rs. 2040
So, Ravi earned Rs. 2040 at the end of the duration.
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