Question

Shekhar took a loan of ₹ 1,000 from the bank at a rate of 14% per annum for 2 years. Find the amount to be paid at the end of 2 years.

• A. 1280

Answer 1

The correct option is A 1280
$\text{Given: Principal (P)}=₹1,000\text{Time period (T) = 2 years}\text{Rate of interest (R) = 14\% p.a}$

$\text{Simple Interest},SI=\frac{P\times R\times T}{100}SI=\frac{₹1,000\times 14\times 2}{100}=₹280$

Hence, after 2 years,
the total amount = Principal + Interest
= ₹ 1000 + ₹ 280
= ₹ 1280