Question

Narendra borrowed rupees 50000 at 12 p.c.p.a. for a year. What amount will he have to return to the bank at the end of the year?

Answer 1

Let us suppose that the interest on the principal of ₹50000 is x.

On principal ₹100, the interest is ₹12.

We shall take the ratio of interest to principal, write it in two forms and obtain an equation.

$\frac{x}{50000}=\frac{12}{100}$

$x=\frac{12}{100}\times 50000=6000$

Therefore, Amount = Principal + Interest

= 50000 + 6000
= 56000 rupees

Hence, Narendra will have to return 56000 rupees to the bank at the end of the year.