Simple Interest – Fractional year at a given rate: At 8.5% per annum simple interest, how much interest will a principal of ₹ 5,800 earn in 2 years 3 months (i.e., 2.25 years)?
Aptitude
Simple Interest
Difficulty: Easy
Choose an option
Answer
Correct Answer: ₹ 1109
Explanation
Introduction / Context:Simple interest over fractional years uses the same formula with time expressed in years (including quarters or months as fractions).
Given Data / Assumptions:
- P = ₹ 5800
- r = 8.5% per annum
- t = 2 years 3 months = 2.25 years
Concept / Approach:Use I = P * r * t with r in decimal per year and t in years.
Step-by-Step Solution:I = 5800 * 0.085 * 2.25I = 5800 * 0.19125 = 1109.25Nearest rupee per options = ₹ 1109
Verification / Alternative check:Direct month-based calculation (27 months): I = 5800 * 8.5% * (27/12) = same result.
Why Other Options Are Wrong:₹ 1300 and ₹ 1509 are overestimates; ₹ 1725 assumes a larger rate or time.
Common Pitfalls:Using 2.3 years instead of 2.25; forgetting to convert percent to decimal.
Final Answer:₹ 1109