Question

What is sum due of ₹ 8,000 due 4 months hence at 12.5% simple interest?

Answer 1

Present worth (P.W.) = ` 8,000

Period (n) = `4/12` years

r = 12.5%

T.D. = `("P.W." xx "n" xx "r")/100`

`= (8000 xx 4/12 xx 12.5)/100`

`= (8000 xx 4.17)/100`

= ₹ 333

Sum due (S.D.) = P.W. + T.D

= 8000 + 333 = 8333

∴ Sum due is ₹ 8,333.