A farmer borrowed ₹10,500 from a village cooperative at 7% simple interest per annum. After 2 years, he repaid the amount along with a processing fee of ₹525. Find the total amount he paid back.
Show answer & explanation
Correct answer: A
Explanation
Given:
Principal = ₹10,500, Rate = 7% per annum, Time = 2 years
Processing Fee = ₹525
According to the formula:
Simple Interest = (P × R × T) / 100
Interest = (10,500 × 7 × 2) / 100 = 1,470
Total Payment = 10,500 + 1,470 + 525 = ₹12,495