Question 60

Ramesh borrowed ₹12000 at 13% per annum simple interest what amount will Ramesh pay to clear his debt after 5 years?

Solution

Given,

Principal = ₹12000

Time = 5 yrs

Rate = 13%

Simple interest = $$\frac{p\times\ r\times\ t}{100}$$

= $$\frac{12000\times\ 13\times\ 5}{100}=₹7800$$

Amount = principal + interest

= ₹12000 + ₹7800 = ₹19800

So, Ramesh had to pay ₹19800 after 5 years to clear his debt.

Hence, Option B is correct.

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