Question

Harish borrows $Rs.2500$ at $10\%$ per annum and $Rs.1000$ at $5\%$ per annum interest. What interest will he have to pay after two years?

Answer 1

Given that, Harish borrows $Rs.2500$ at $10\%$ per annum and $Rs.1000$ at $5\%$ per annum.

To find out: What interest will he pay after two years?

Let the interest amount be $Rs.X$ after two years.

We know that, $SI=\frac{P\times R\times T}{100}$

$\therefore X=\frac{2500\times 10\times 2}{100}+\frac{1000\times 5\times 2}{100}$

$X=25\times 10\times 2+10\times 5\times 2$

$X=500+100$

$X=Rs.600$

Hence, Harish will pay $Rs.600$ as the total simple interest after two years.