Question

Shalini borrowed ₹ 35,000 at a simple interest rate 8.5 % per annum. How much money will she pay at the end of 4 years to clear her debt?

• A. ₹ 11,900
• B. ₹ 46,900
• C. ₹ 42,900
• D. ₹ 35,000

Answer 1

The correct option is B

₹ 46,900

We know that S.I. = $\frac{PRT}{100}$

where S.I. is the simple interest, P is the principal, R is the rate of interest per annum and T is the time(number of years).

Given P = ₹ 35,000, R = 8.5 % per annum and T = 4 years

S.I. = $\frac{P\times T\times R}{100}$

= $\frac{35,000\times 4\times 8.5}{100}$

= ₹ 11,900

$\therefore$ Amount to be paid at the end of 4 years
= P + I
= 35,000 + 11,900
= ₹ 46,900