Question

Aravind borrowed a sum of Rs 8,000 from Akash at 7% per annum. Find the interest and amount to be paid at the end of two years.

Answer 1

Here Principal P = Rs 8,000 

Rate of interest r = 7% Per annum 

Time (n) = 2 Years 

Simple Interest (I) = \(\frac{pnr}{100}\)

= \(\frac{8000\times2\times7}{100}\)

I = Rs 1120 

Amount = P + I

I = Rs 8000 + 1120 

= Rs 9120 

Interest to be paid = Rs 1,120 

Amount to be paid = Rs 9,120