Question

Find the S.I on Rs. 200 for 7 months at 5 paise per rupee per month.

Answer 1

Hint: To solve this question, we will use the concept of simple interest of an amount. The formula of simple interest on any amount is given by, ${\text{S}}{\text{.I}}{\text{. = P}} \times {\text{R}} \times {\text{T}}$, where P is the principal amount, R is the rate of interest and T is the time period.

Complete step-by-step answer:
Basically, simple interest (S.I) is the interest calculated on the principal value or we can say that, original value.
Given,
Principal amount, P = Rs. 200.
Rate of interest, R = 5 paise per rupee per month = $\dfrac{5}{{100}}$ rupees per month = 0.05 rupees per month.
Time period, T = 7 months.
Now, we know that simple interest (S.I) can be calculated by using the formula,
$ \Rightarrow {\text{S}}{\text{.I = P}} \times {\text{R}} \times {\text{T}}$
Putting all the given values in the above formula, we will get
$ \Rightarrow {\text{S}}{\text{.I = 200}} \times 0.05 \times 7$
$ \Rightarrow {\text{S}}{\text{.I = Rs}}{\text{. 70}}$
Hence, we can say that the simple interest on Rs. 200 at rate 5 paise per rupee per month for 7 months is Rs. 70.

Note: Whenever we ask such types of questions, we always have to remember the basic concept of the simple interest. First, we have to collect all the details given in the question and then we have to find the other details if required or not given in the question. After that, we will use the formula of simple interest and by putting all the values, we will get the required answer. We also have to remember that the principal amount and the rate of interest both must be in the same unit (either both are in rupees or both are in paise).