Question

Shanti borrowed Rs 6,000/- from a Bank for 7 years at 12 % per annum. What amount will clear off her debt?

Answer 1

Here principal (P) = Rs 6,000 

Rate of Interest (r) = 12 % per annum 

Time (n) = 4 years

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

= \(\frac{6000\times7\times12}{100}\)

I = Rs 5,040 

Amount to be paid A = P + I 

= 6,000 + 5,040 

= Rs 11,040