Find the simple interest (in ₹) on ₹2,000 at 7% per annum rate of interest for the period from 7 February 2023 to 21 April 2023.
- AOption (a)
28
- BOption (b)
26
- COption (c)
27
- DOption (d)
29
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Correct answer
28
Why this answer is correct
Shortcut Trick
Total days from 7 February to 21 April 2023 is 73 days.
73 days is exactly 1/5 of a year (73 ÷ 365 = 1/5).
Simple Interest = Principal × Rate × Time = 2000 × 7% × 1/5
SI = 20 × 7 ÷ 5 = 4 × 7 = 28
∴ The correct answer is ₹28.
Alternate Method
Given:
Principal (P) = ₹2,000
Rate (R) = 7% per annum
Time Period: 7 February 2023 to 21 April 2023
Calculation of Time (T):
⇒ Number of days in February (28 − 7) = 21 days
⇒ Number of days in March = 31 days
⇒ Number of days in April = 21 days
⇒ Total Days = 21 + 31 + 21 = 73 days
⇒ Time in years (T) = 73 ÷ 365 = 1/5 years
Calculation of Simple Interest (SI):
⇒ Formula: SI = (P × R × T) ÷ 100
⇒ SI = (2000 × 7 × 1/5) ÷ 100
⇒ SI = (2000 × 7) ÷ (5 × 100)
⇒ SI = 14000 ÷ 500
⇒ SI = 28
∴ The correct answer is ₹28.
Additional Information
Simple Interest Formula
SI = (P × R × T) ÷ 100, where P is Principal, R is Rate, and T is Time in years.
Day Counting Rule
While calculating interest for a period, the day on which money is deposited is usually excluded, and the day on which money is withdrawn is included.
Time Conversion
If time is given in days, divide by 365 (or 366 for a leap year) to convert it into years. Note that 73 days = 1/5 year, 146 days = 2/5 year, and 219 days = 3/5 year.