Question

Arjun borrowed a sum of Rs 5,000 from a bank at 5% per annum. Find the interest and amount to be paid at the end of three year.

Answer 1

Here Principal (P) = Rs 5,000 

Rate of interest (r) = 5 % per annum 

Time (n) = 3 years 

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

= \(\frac{5000\times3\times5}{100}\)

= Rs 750 

Amount to be paid A = P + I 

= Rs 5,000 + Rs 750 

= Rs 5,750 

I = Rs 750; 

A = Rs 5,750