A dance instructor borrowed ₹9,500 from a colleague at 7% simple interest per annum. After 4 years, he repaid the borrowed amount along with an additional donation of ₹350 to his colleague’s charity. Find the total amount he paid back.
Show answer & explanation
Correct answer: A
Explanation
Given:
Principal (P) = 9500
Rate (R) = 7% per annum
Time (T) = 4 years
Additional Donation = 350
According to the formula:
Simple Interest = (P × R × T) / 100
Total Amount = P + Interest + Donation
Interest = (9500 × 7 × 4) / 100 = 2660
Total Amount = 9500 + 2660 + 350 = ₹12,510