Question

R borrowed Rs. 1,200 at 13% per annum simple interest. What amount will R pay to clear the debt after 5 years?

• A. 1860
• B. 1880
• C. 1980
• D. 2000

Answer 1

Answer:

C. 1980

Given:

Principal = Rs 1200

Rate of interest = 13%

Time = 5 years

Concept used:

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

Amount = SI + P

P → principal R → rate of interest T → time

Calculation:

Amount pay by R after 5 years $=1200+\frac{(1200\times{13}\times{5})}{100}$

Amount = 1200 + 780 = Rs. 1980

∴ The amount paid after 5 years is Rs 1980.