What is the Simple Interest earned on Rs.2400 in 4 years 6 months at the rate of 4.5% per annum?
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A.
Rs.816
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B.
Rs.926
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C.
Rs.486
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D.
Rs.796
Correct Answer:
C. Rs.486
Explanation:
To calculate the simple interest, follow these steps: - Identify the Given Values: The principal amount (P) is Rs.2400, the annual interest rate (R) is 4.5%, and the time period (T) is 4 years and 6 months. - Convert Time to Years: Since interest is per annum, convert 6 months into years by dividing by 12 (6/12 = 0.5 years). The total time (T) is 4.5 years. - Apply the Simple Interest Formula: Use the formula Interest = (P × R × T) / 100. - Perform the Calculation: Multiply 2400 by 4.5 and then by 4.5 again, which equals 48,600. Divide this total by 100. - Final Result: The simple interest earned is Rs.486.
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