A borrows a sum of ₹1,000 from his friend B on 31st December 2015 on the condition that he will return the same after one year with simple interest at 12% per annum. However, A gets into a position of returning the money on 1st May 2016. How much amount the has to return to B ?
P= 1000, T= 4 months or 4/12 years = 1/3 years ( 31st dec to 1st may 2016), R = 12%
S.I= $$\frac{P\times T\times R}{100}$$
S.I=$$\frac{1000\times\frac{1}{3}\times12}{100}=40$$
Amount he have to return = 1000 + 40 = Rs 1040
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