Question

Raj takes a loan of Rs 10000 from a bank for a period of 1 year. The rate of interest is 10% per annum.
Find the amount he has to pay at the end of a year.

• A. 12,000
• B. 11,000
• C. 10,000
• D. 15,000

Answer 1

The correct option is B 11,000

Here, the loan sum = P = Rs 10000
Rate of interest per year = R = 10%
Time for which it is borrowed = T = 1 year
Thus, simple interest for a year: $\mathrm{SI}=\frac{\mathrm{PRT}}{100}\mathrm{SI}=\frac{10000*10*1}{100}=1000$
Amount that Raj has to pay to the bank at the end of the year
= Principal + Interest
= 10000 + 1000
= Rs 11,000