A man borrowed Rs. 18,000 at 10% per annum simple interest. After 3 years, he repaid the borrowed money along with the interest by giving a motorcycle worth 12,000 and the remaining in cash. Find the amount of cash he paid.
Show answer & explanation
Correct answer: C
Explanation
Given:
Principal = ₹18,000
Rate = 10% per annum
Time = 3 years
According to the formula:
Simple Interest = (P × R × T) / 100
Interest = (18,000 × 10 × 3) / 100 = 5,400
Total Amount = 18,000 + 5,400 = 23,400
Cost of the motorcycle = 12,000
Cash Amount = 23,400 − 12,000 = ₹11,400