Question

Ahmed borrowed ₹ 20,000 from the bank at the rate of 9 p.c.p.a. What is the interest he has to pay to the bank after 2 years?

• A. 1,800 rupees
• B. 2,000 rupees
• C. 3,600 rupees
• D. 1,200 rupees

Answer 1

The correct option is C 3,600 rupees

Given,
Principal = ₹ 20,000, Rate of interest = 9 p.c.p.a , Time= 2 years
$I=\frac{P\times T\times R}{100}$
$=\frac{20,000\times 2\times 9}{100}$
$=₹3,600$
The interest to be paid after two years is ₹ 3600 .