Question

Ravi takes a loan of Rs 10,000 from a bank for a period of 1 year. The rate of interest is 10% per annum. Find the interest he has to pay at the end of a year.

• A. ₹1000
• B. ₹990
• C. ₹100
• D. ₹550

Answer 1

The correct option is A ₹1000

The loan sum = ₹ 10,000
The rate of interest = 10 %
Let the interest be $x$
Hence $\frac{x}{10000}$ = $\frac{10}{100}$
$x=\frac{10\times 10,000}{100}$
= ₹ 1000

Hence the interest earned is ₹ 1000.