Question
What would be the annual interest accrued on a deposit
of Rs.24,550 in a bank that pays a 22% per annum rate of simple interest?Solution
ATQ, Principal (P) = Rs. 24,550 Annual Interest Rate®= 22% or 0.22 in decimal Time (T) in years = 1 year (for annual interest) Using the simple interest formula: Interest (I) = P × R × T Now, plugging in the numbers: I = 24,550 × 0.22 × 1 Now, calculate the multiplication: I = Rs. 5,401 The annual interest accrued is Rs. 5,401.
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