Question

Himanshu borrowed Rs. 4000 from a PNB bank at 4% per annum. Find the amount he has to pay after \(2 \frac 1 2\) years.

1. Rs. 4400
2. Rs. 4200
3. Rs. 4800
4. Rs. 4000

Answer 1

Correct Answer - Option 1 : Rs. 4400

Given:

P = 4000

R = 4%

T = \(2 \frac 1 2\) = 5/2 years

Formula:

SI = PRT/100

Here SI = Simple interest, P = Principal, R = Rate, T = Time

Amount = Principal + Simple Interest

Calculation:

SI = P × R × T/100​

⇒ 4000 × 4 × (5/2)​/100

⇒ Rs. 400

⇒Amount = 4000 + 400 = Rs. 4400

∴ Amount has to pay is Rs. 4400