Somu has borrowed ₹10,000 from money lender with simple interest at a rate of 7% power 6 months. How much amount will he pay to the moneylender after 3 years?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹14,200.
Sum (P) = Rs. 10000
Time (T) = 3 years
Rate (R) = 7%
Simple Interest = (P × T × R)/100
Amount = P + S.I.
When interest is calculated on 6 month basis -
T = actual × 2
T = 3 × 2 = 6
Now, S.I. = (10000 × 6 × 7)/100 = Rs. 4200
So, amount after 3 years = 10000 + 4200 = Rs. 14200