Question

A man borrowed ₹ 25000 at 12% for a year. What amount will he have to return to the bank at the end of the year?

• A. ₹ 25,000
• B. ₹25,800
• C. ₹ 28,000
• D. ₹ 26,000

Answer 1

The correct option is C ₹ 28,000

Given:
Principal (P) = ₹ 25,000
Rate of interest (R) = 12%
Time (T) = 1 year

I = $\frac{P\times T\times R}{100}$

= $\frac{25,000\times 12\times 1}{100}$

=$\frac{3,00,000}{100}$

= 3,000

Amount = Principal + Interest
= ₹ 25,000 + ₹ 3,000
= ₹ 28,000
Hence, He will have to return ₹ 28,000 to the bank at the end of the year.