Peter lent Rs. 15,000 to Adarsh at 6.5% per annum for 4 years at simple interest. How much amount he will receive at the end?

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Peter lent Rs. 15,000 to Adarsh at 6.5% per annum for 4 years at simple interest. How much amount he will receive at the end?
1. Rs. 3900
2. Rs. 4500
3. Rs. 18,900
4. Rs. 20,900

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Correct Answer - Option 3 : Rs. 18,900

Given

Principal = Rs.15,000, Rate = 6.5%, Time = 4 years

Formula used

Amount = Principal + Simple interest

Simple interest = (Principal × Rate × Time)/100

Calculation

Simple interest = (15,000 × 6.5 × 4)/100

⇒ 3900

Amount = 15,000 + 3900

⇒ Rs.18,900

The amount will be Rs. 18,900.