What is the simple interest on RS 4500 at 10% per annum for 6 months?

Simple Interest Calculation for a Six-Month Investment

In the domain of finance, simple interest refers to the interest charged on a loan or the interest earned on an investment, calculated as a flat percentage of the principal amount over a specified period.

Formula for Simple Interest:

Simple Interest = (Principal × Rate × Time) / 100

Where:

• Principal: The original amount invested or borrowed
• Rate: The annual interest rate expressed as a percentage
• Time: The duration of the investment or loan in years

Problem:

Calculate the simple interest earned on an investment of RS 4500 at an annual interest rate of 10% for a period of 6 months.

Solution:

Given:

• Principal = RS 4500
• Rate = 10% per annum
• Time = 6 months (or 0.5 years)

Using the formula for simple interest:

Simple Interest = (4500 × 10 × 0.5) / 100 = (450 × 5) / 100 = 225

Therefore, the simple interest earned on the investment of RS 4500 at 10% per annum for 6 months is RS 225.