Question

Sam takes a loan of ₹ 8,000 to buy a used truck at the rate of 9 % Simple Interest. Calculate the interest he pays at the end of the year.

• A. ₹330
• B. ₹550
• C. ₹1000
• D. ₹720

Answer 1

The correct option is D ₹720

The amount borrowed = ₹ 8000
And, the rate of interest = 9%
Let the interest to be paid annually be $x$
$\frac{x}{8000}=\frac{9}{100}$
$x=9\times 80$
$x=₹720$