BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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divide 12 by the months
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divide the months by 12
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multiply 12 times the months
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change the months to a decimal
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Detailed explanation-1: -In simple interest when the time is given in months and days we always need to convert into years. Notes: (i) When “T’ i.e., the time is given in months then it should be divided by 12 to convert into years. (ii) When “T’ i.e., the time is given in days then it should be divided by 365 to convert into years.
Detailed explanation-2: -Simple interest is calculated with the following formula: S.I. = P × R × T, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years. The rate of interest is in percentage r% and is to be written as r/100.
Detailed explanation-3: -To calculate simple interest, the formula used is (P x r x t)/100 where P, r, and t stands for principal amount, rate of interest and tenure of the deposit in years.