A borrows a sum of Rs. 2,000 from his friend B on 31 December 2011 on the condition that he will return the same after one year with simple interest at 8% per annum. However, A gets into a position of returning the money on 1 July 2012. How much amount he has to return to B?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs.2080.
SI = PRT/100
Since A returns the money in 7 months only;
T = 6/12 = 1/2 years
R = 8%
Principal = Rs. 2000
Hence,
Simple interest = 2000 × 8 × 1/2 × 100 = 80
Amount = 2000 + 80 = Rs.2080