Question

What will be the simple interest on a principal of #3000 at 5%per annum for 2months?

Answer 1

To calculate simple interest, you can use the formula:

\[
\text{Simple Interest} = P \times r \times t
\]

Where:
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the rate of interest per year (in decimal form),
- \( t \) is the time the money is invested or borrowed for, in years.

Given:
- \( P = 3000 \)
- \( r = 5\% = \frac{5}{100} = 0.05 \)
- \( t = 2 \text{ months} = \frac{2}{12} \text{ years} = \frac{1}{6} \text{ years} \)

Now, plug in the values:

\[
\text{Simple Interest} = 3000 \times 0.05 \times \frac{1}{6}
\]

Calculating it step by step:

1. Calculate \( 3000 \times 0.05 = 150 \)
2. Then, \( 150 \times \frac{1}{6} = 25 \)

So, the simple interest for 2 months will be **#25**.