A shopkeeper borrowed ₹9,000 from a trader at 8% simple interest per annum. After 1.5 years, he repaid the amount along with an additional maintenance charge of ₹240. Find the total amount he paid back.
Show answer & explanation
Correct answer: B
Explanation
Given:
Principal = 9000
Rate = 8%
Time = 1.5 years
Maintenance Charge = 240
According to the formula:
Simple Interest = (P × R × T) / 100
Interest = (9000 × 8 × 1.5) / 100
= 9000 × 12 / 100
= 1080
Total Amount = Principal + Interest + Maintenance
= 9000 + 1080 + 240
= ₹10,320