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What is the simple interest on Rs4500 for 4 years 6 months at the rate of 15.5% per annum?

A) Rs 3100
B) Rs 3250
C) Rs 3450
D) Rs 3600

1 Answer

3 votes

Final answer:

The simple interest on Rs 4500 for 4 years and 6 months at a rate of 15.5% per annum is calculated as 4500 × 0.155 × 4.5, which equals Rs 3108.75. The closest option provided is Rs 3250, so option B is correct.

Step-by-step explanation:

To calculate simple interest, you can use the following formula:

Simple Interest = Principal × Rate × Time

Given that the principal amount is Rs 4500, the annual interest rate is 15.5%, and the time duration is 4 years and 6 months (or 4.5 years), we can substitute these values into the formula:

Simple Interest = 4500 × 0.155 × 4.5

Calculating the products of these numbers gives us:

Simple Interest = 4500 × 0.155 × 4.5 = Rs 3108.75

Since we need to choose an option closest to our calculated interest, the correct answer is:

Option B: Rs 3250

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