On 20 January 2023, Preeti borrowed Rs. 22,400 at 16% p.a. simple interest. She repaid the loan on 20 May 2023. What amount did she repay?
Show answer & explanation
Correct answer: B
Explanation
Given:
Principal = ₹22,400
Rate = 16% per annum
Time = January 20 to May 20 = 4 months
Formula:
Simple Interest = (P × R × T) / 100
T = 4/12 years
Interest = (22,400 × 16 × 4/12) / 100 = 1194.67
Total Amount = 22,400 + 1194.67 = ₹23,594.67