CA Foundation · Quantitative Aptitude · Mathematics of Finance
Mr. Desai deposits ₹24,000 for 8 months at 7.5% per annum simple interest. What interest does he earn?
The simple interest is ₹1,200. Eight months is two-thirds of a year, so interest equals 24,000 × 7.5% × 2/3. A full year would give ₹1,800, so the time must be converted into years before applying the formula.
- A₹1,200Correct
- B₹14,400
- C₹1,800
- D₹900
Explanation
Time = 8/12 = 2/3 year. SI = 24,000 × 7.5/100 × 2/3 = 1,800 × 2/3 = ₹1,200. Taking 8 as years gives ₹14,400, and ignoring the fraction of a year gives ₹1,800.
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