Question

When calculating simple interest, what must you do if you want to invest for months instead of years?

Answer 1

You must divide by twelve

Answer 2

If investment is made for months instead of years we have to convert years to months by multiplying 12 with the given number of years.

Solution:

The formula for calculating the simple interest is

$SI = \frac{PNR}{100}$

Here, SI is Simple Interest; P is principal; N is the number of years and R is the rate of interest

Now, if we invest for months instead of years then to find the simple interest, we must convert the units in years to months.

1 year has 12 months;

So, we have to multiply 12 to the given number of years.