A sports coach borrowed ₹12,000 from a welfare fund at 5% simple interest per annum. He returned the amount after 2.5 years, along with a service charge of ₹350. Find the total amount he paid back.
Show answer & explanation
Correct answer: D
Explanation
Given:
Principal = 12,000
Rate = 5%
Time = 2.5 years
Service Charge = 350
According to the formula:
Simple Interest = (P × R × T) / 100
Interest = (12,000 × 5 × 2.5) / 100 = 1,500
Total Amount = Principal + Interest + Service Charge
= 12,000 + 1,500 + 350
= 13,850 Rupees