Question

An amount of ₹ 10000 is borrowed by Harsha at the rate of 9% per annum for 5 years. Find the amount Harsha has to pay at the end of 5 years.

• A. ₹ 14500
• B. ₹ 16500
• C. ₹ 15000
• D. ₹ 16000

Answer 1

The correct option is A ₹ 14500

Given
Principal (P) = ₹ 10000
Rate of interest (R) = 9%
Time period(T) is 5 years.

Then,

Simple interest on this sum =$\frac{PRT}{100}$
Simple interest on this sum =$\frac{10000\times 9\times 5}{100}$
Simple interest on this sum = ₹ 4500

Now,

Amount to be paid by Harsha = Principal + Simple interest
Amount to be paid by Harsha = ₹ 10000 +₹ 4500
Amount to be paid by Harsha =₹ 14500