A shopkeeper took a loan of ₹7500 from a bank on 1 April 2025 with simple interest at 9% per annum. He decided to clear the loan on 1 September 2025. How much amount did he pay back to the bank?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹7781.25.
Time from April 1 to September 1 = 5 months
Time = years
SI =
SI = = = = 281.25
Amount = Principal(P) + SI
Amount = 7500 + 281.25 = ₹7781.25