Question

Ram borrowed Rs. 4500 from shyam at the rate of 12% per annum. At the end of 2 years.

1. how much simple interest will ram have to pay ?
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Answer 1

R1080

Step-by-step explanation:

i=12%=12/100

R=4500

n=2 years

I=PRT (simple interest formula)

I=(4500)(12/100)(2)

I=R1080

or

A=P(1+in) (simple interest formula)

A=(4500)(1+12/100)(2)

A=R5580

R5580-R4500=R1080

therefore ram will have to pay R1080