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Find the amount at 6% simple interest of rs 1200 due in 9 month

1 Answer

4 votes

STEP 1: Convert interest rate of 2% per 6 months into rate per year.

rate per year = rate per 6 month⋅2=2%⋅2=4%

STEP 2: Convert 9 months into years.

9 months =

9

12

years=0.75 years

STEP 3: Find principal by using the formula

I=P⋅i⋅t

, where I is interest, P is total principal, i is rate of interest per year, and t is total time in years.

In this example I = $15, i = 4% and t = 0.75 years, so

I

P

P

P

=P⋅i⋅t

=

I

i⋅t

=

15

0.04⋅0.75

=500

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