Sarah lent ₹12000 to John on 10 January 2024 at a simple interest rate of 6% per annum. John plans to pay back the entire amount on 10 July 2024. What is the total amount John needs to return?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹12360.
Principal (P) = 12000
Rate (R) = 6% per annum
Time = 10 January to 10 July = 6 months = 6/12 years
Simple Interest = (P × R × T)/100
= [12000 × 6 × (6/12)]/100
= 36000/100
= 360
Total Amount = 12000 + 360 = 12360