How to calculate simple interest?
Principal: The money which we deposit in or the lower from the bank or the money learned called the principal.
Rate of interest: The interest paid on $ 100 for one year is called the rate per cent per year or rate per cent per annum.
Time: The period of time for which the money is lent or invested.
Interest: Additional money paid by the borrowed to the lender for using the money is called interest.
Simple Interest: If the interest is calculated uniformly on the original principal throughout the lone period, it is called simple interest.
Amount: The total money paid back to the lender is called the amount.
Calculate Simple Interest
Answer:
rs 6
Step-by-step explanation:
The formula for simple interest is i = p*r*t, where p is the principal, r is the interest rate as a decimal fraction, and t is the time in years.
Here, p = rs 1200, r = 0.06, and t = 1/12 year (1 month).
So we have i = (rs 1200)(0.06)(1/12) = rs 6.
