Question

A man borrow INR $20000$ for the house maintenance which is given by him in 2 yrs at $10\%$ per annum. What is total amount paid by him after 2 yrs?

• A. INR $21000$
• B. INR $22000$
• C. INR $24000$
• D. INR $4000$

Answer 1

The correct option is C INR $24000$

You want to calculate the interest on $INR20000$ at $10$ interest per year after $2$ years.

The formula we'll use for this is the simple interest formula,

$Interest,I=P\times t\times r$

Where:

$P$ is the principal amount, $20000$.

$r$ is the interest rate, $10$ per year, or in decimal form, $\frac{10}{100}=0.1$.

$t$ is the time involved, $2$ years.

$I=20000\times 2\times 0.1$

$I=INR4000$

Hence, total amount paid by him after 2 years is,

$=P+I=20000+4000=INR24000$