The formula for calculating simple interest is expressed as
I = PRT
where
I represents the interest
P represents the principal or initial amount invested
R represents the interest rate
T represents the time in years
From the information given,
P = 11750
R = 7.5%
Recall, percentage is expressed in terms of 100. Thus,
R = 7.5/100 = 0.075
T = 3
By substituting these values into the formula,
I = 11750 x 0.075 x 3
I = 2643.75
Total interest = 2643.75 rupees
Total amount = principal + total interest
By substituting the values,
Total amount = 11750 + 2643.75
Total amount =
