Question

John applied for a loan from HIBC bank on October 16 for Rs 4000. The bank received back the money from John on December 27 of the same year. The rate of interest on his loan being 11% per annum, how much did HIBC bank earn?

• A. Rs 88
• B. Rs 77
• C. Rs 72
• D. Rs 86

Answer 1

The correct option is A

Rs 88

Given: P = Rs 4000, R = 11% per annum.

T = October 16-31 + November 01-30 + December 01-27

T = 16 + 30 + 27 = 73 Days = $\frac{73}{365}$ = $\frac{1}{5}$ years

I = $\frac{PTR}{100}$ $=\frac{4000\times 11}{100\times 5}=Rs88$