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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