Ishaan takes a short loan of ₹24,000 at 9% per annum simple interest and repays it after 10 months. How much interest does he pay?

Explanation

1. 01

   Time must be in years: 10 months = $\frac{10}{12} = \frac{5}{6}$ year.

2. 02

   Interest for one full year = 9% of ₹24,000 = ₹2,160.

3. 03

   Interest for $\frac{5}{6}$ year = $2160 \times \frac{5}{6}$ = ₹1,800.