Question

Shanta borrowed ₹ 6000 from the State Bank of India for 3 years 8 months at 12% per annum. What amount will clear off her debt?

Answer 1

From the question,

Shanta borrowed ₹ 6000 from the State Bank of India (Principal)

Time = 3 years 8 months

We know that, 1 year = 12 months

∴ 3 years 8 months = (44/12) = (11/3)

SI = 12 % .p.a.

First we have to find Simple Interest,

SI = (P × R × T)/100

= (6000 × 12 × (11/3))/ 100

= 6000 × 12 × (11/3) × (1/100)

= (6000 × 12 × 11 × 1)/ (3 × 100)

= (60 × 4 × 11 × 1)/ (1 × 1)

= (60 × 4 × 11 × 1)

= ₹ 2640

Amount = (principal + SI)

= (6000 + 2640)

= ₹ 8640

∴The amount will clear off her debt is ₹ 8640