Question

At simple interest Gaurav borrows Rs. 1,500 from Sandeep at the rate of 14% per annum. What amount of money should Gaurav pay to Sandeep after 1 year to clear the debt?
1. Rs. 1,700
2. Rs. 1,710
3. Rs. 1,705
4. Rs. 1,715

Answer 1

Correct Answer - Option 2 : Rs. 1,710

Given:

P = 1500 Rs.

R = 14%

T = 1 year

Formula used : 

\(Amount = \;\frac{{P\; \times \;\left( {100 + R \times T} \right)}}{{100}}\)

Calculation:

\(Amount = \;\frac{{1500\; \times \;\left( {100 + 14 \times 1} \right)}}{{100}}\)

⇒ 15 × 114

⇒  Rs. 1,710

∴ The amount is Rs. 1,710.