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Question
If a deposit of ₹ 2,000 earns an interest of ₹ 500 in 3 years, how much interest would a deposit of ₹ 36,000 earn in 3 years with the same rate of simple interest?
Solution
Interest earned on deposit of ₹ 2000 for 3 months = ₹ 500
Interest earned on deposit of ₹ 1 for 3 months = `₹500/2000`
Interest earned on deposit of ₹ 36000 for 3 months = `₹500/2000xx36000` = ₹ 9000
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