Question

Joseph borrowed ₹ 15,000 from a bank for certain years at the rate of interest of $9\frac{1}{2}$ p.c.p.a for his medical expenses. The amount he has to pay to the bank at the end of the period is ₹17,850. What is the period of the loan?

• A. 5
• B. 9
• C. 2
• D. 10

Answer 1

The correct option is C 2

Given P= ₹ 15,000 , Amount = ₹ 17,850, Time =?,
R=$9\frac{1}{2}=\frac{19}{2}$

We know that,
Amount = Principal + Interest
Interest = Amount - Principle
= ₹ 17,850 - ₹ 15,000
= ₹ 2,850
$I=\frac{P\times T\times R}{100}$
$2850=\frac{15000\times T\times \frac{19}{2}}{100}$
$2850=\frac{15000\times T\times 19}{100\times 2}$

$T=\frac{2850\times 100}{15000\times 19}$

T=2
Period of loan is 2 years.