Answer :
Given:
Principal = 280,000
Rate of interest = 12% per annum.
Time period is from April 1 to December 31.
To find:
The interest recognized for the period from April 1 to December 31.
Solution:
Time period from April 1 to December 31 is 9 months.
12 months = 1 year
1 month = [tex]\dfrac{1}{12}[/tex] year
9 month = [tex]9\times \dfrac{1}{12}[/tex] year
So,
[tex]Time=9\times \dfrac{1}{12}[/tex]
[tex]Time=\dfrac{9}{12}[/tex]
[tex]Time=0.75[/tex]
Formula for interest is
[tex]I=P\times r\times t[/tex]
where, P is principal, r is rate of interest and t is time.
[tex]I=280,000\times \dfrac{12}{100}\times 0.75[/tex]
[tex]I=25200[/tex]
Therefore, the the interest is 25,200.