Simple Interest — What is the simple interest for 1 year 4 months on ₹ 25,800 at 14% per annum?

Difficulty: Easy

Correct Answer: ₹ 4816

Explanation:


Introduction / Context:
Convert mixed time (years and months) into years, then apply SI = P * r * t.



Given Data / Assumptions:

  • P = ₹ 25,800.
  • r = 14% per annum.
  • t = 1 year 4 months = 1 + 4/12 = 4/3 years.


Concept / Approach:
Use t in years as a fraction for simple interest computations.



Step-by-Step Solution:
t = 16/12 = 4/3 years.SI = 25,800 * 0.14 * (4/3).0.14 * (4/3) = 0.186666...SI = 25,800 * 0.186666... = ₹ 4816 exactly.



Verification / Alternative check:
Per year SI = 25,800 * 0.14 = 3612; one third of that = 1204; sum = 3612 + 1204 = 4816.



Why Other Options Are Wrong:
₹ 4815 and ₹ 4816.75 are rounding errors; ₹ 2580 is only 10%; ₹ 4700 is an approximation.



Common Pitfalls:
Using 1.4 (140%) instead of 0.14; not converting months to fraction of year correctly.



Final Answer:
₹ 4816

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