Question

₹5,000 is borrowed at 3.5% rate of interest p.a. borrowed for 3 years. Find the amount to be paid at the end of the third year. [4 marks]

Answer 1

Principal amount (P) = ₹5,000
Rate of interest (R) = 3.5%
Time = 3 years

We know that
Simple Interest = $\frac{Principal\times Rate\times Time\left(years\right)}{100}$ [1 mark]
Simple Interest = $\frac{5000\times 3.5\times 3}{100}$ = 525 [1 mark]

Now, Amount = Principal + Interest [1 mark]
So, Amount = ₹5,000 + ₹525 = ₹5,525 [1 mark]

So, the amount of ₹5,525 will have to be paid for the given principal at the given rate of interest and time.