Priya got a prize money of Rs. 3000 on March, 2013. She spent Rs. 500 on her personal expenses. After a month, she deposited the money at 25% rate of interest at simple interest. What interest she will get in September, 2016?

After spending Rs. 500 from the Rs. 3000 prize, Priya deposits a principal of Rs. 2500. The time period from April 2013 to September 2016 is 3.5 years, and applying the simple interest formula SI equals (P times R times T) divided by 100, we get (2500 times 25 times 3.5) divided by 100. The numerator becomes 218750, and dividing by 100 gives an interest of Rs. 2187.5. This time calculation only works if the question intends to measure from the beginning of April 2013, as a strict one month delay makes the period an awkward 3 years and 5 months.

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