Find the simple interest amount if Rs. 1,500 is lent out at the rate of 9% per annum simple interest for 6 years?

Appeared in: RRB Staff Nurse Kolkata-2015

Explanation

The formula for Simple Interest (SI) is SI = (Principal × Rate × Time) / 100.
Given values are Principal (P) = Rs. 1,500, Rate (R) = 9% per annum, and Time (T) = 6 years.
Substituting the values: SI = (1500 × 9 × 6) / 100.
The calculation simplifies to 15 × 9 × 6, which equals 810.
Therefore, the simple interest earned over 6 years is Rs. 810.

Option A: Rs. 180 is an incorrect calculation. It would be the interest for approximately 1.33 years (180 / (1500 * 0.09)), not 6 years.
Option B: Rs. 900 is a miscalculation. It might result from incorrectly rounding the rate to 10% (1500 * 0.10 * 6 = 900).
Option C: Rs. 1,350 is an incorrect calculation. This amount represents the interest for 10 years (15 × 9 × 10 = 1350), not 6 years.

Visual 1: Infographic: A visual breakdown of the Simple Interest formula (SI = PxRxT/100) with each component (Principal, Rate, Time) clearly defined with examples.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Calculation of Simple Interest as background academic context rather than a clinical decision trigger.
This question tests basic mathematical aptitude, a non-nursing subject area often included in competitive nursing recruitment exams to assess general intelligence and problem-solving skills.
Proficiency in basic calculations is essential for nurses for tasks like drug dosage calculations, IV drip rate monitoring, and interpreting patient data, even though this specific formula is not used clinically.
What if the question asked for the total amount to be repaid? You would add the simple interest (Rs. 810) to the principal (Rs. 1,500), resulting in a total amount of Rs. 2,310.

How to Approach the Question

First, identify the type of question. This is a direct calculation problem from the topic of Simple Interest.
Recall the standard formula for Simple Interest: SI = (P × R × T) / 100.
Carefully read the question to extract the values for Principal (P), Rate (R), and Time (T).
Substitute these values into the formula: P = 1500, R = 9, T = 6.
Perform the calculation step-by-step to avoid errors: (1500 × 9 × 6) / 100.
Compare your final calculated value with the given options to find the correct answer.

Concept Tested & Keywords

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