How much simple interest will ₹6,700 earn in 13 months at a 12% interest rate per annum?

Question

Accepted Answer

Simple Interest (SI) is calculated using the formula: SI = (P × R × T) / 100, where P is the principal amount, R is the rate of interest per annum, and T is the time in years.

Given:
P = ₹6,700
R = 12% per annum
T = 13 months = 13/12 years

Calculating SI:
SI = (6700 × 12 × 13/12) / 100
SI = (6700 × 12 × 1.0833) / 100
SI = (6700 × 13) / 100
SI = 87100 / 100 = ₹871

Rechecking the calculation:
Since 13 months is 1 year and 1 month, the exact time in years is 13/12 = 1.0833.
SI = (6700 × 12 × 1.0833) / 100 = (6700 × 13) / 100 = ₹871

Therefore, the simple interest earned is ₹871.

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