Question

Shalini borrowed ₹ 35,000 at the rate of 8. 5 % per annum simple interest. How much money will she pay at the end of 1 year to clear her debt?

• A. ₹ 36,000
• B. ₹ 37,975
• C. ₹38000
• D. ₹39,000

Answer 1

The correct option is B ₹ 37,975

Given P = ₹ 35,000
R = 8.5 % per annum and T = 1 year

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

= $\frac{35,000\times 1\times 8.5}{100}$

= ₹ 2,975

Hence amount to be paid at the end the year = P + I

= 35,000 + 2,975

= ₹ 37,975