Question

Sajjanrao takes a loan of ₹ 10,000 from a bank at the rate of 10 % per annum for a year. How much money including the interest will he have to pay after a year?

• A. 11000

Answer 1

The correct option is A 11000
Here, P = ₹ 10,000 ; R = 10 % p.a ; T = 1 year
Since, we have to calculate the amount for one year, we can either use simple interest or compound interest.

$I=\frac{PRT}{100}=\frac{10000\times 10\times 1}{100}=₹1000$

After one year Sajjanrao will have to pay
$=₹10,000+₹1000=₹11,000$