Question

Sumit lends Rs 10000 for 2 years at 20% per annum simple interest. After 1 year, he receives Rs 6000. How much will he receive next year?

• A. Rs 5900
• B. Rs 6400
• C. Rs 7200
• D. Rs 6800
• E. None of these

Answer 1

The correct option is C Rs 7200

Amount after 1 year $=P(1+\frac{R\times T}{100})$
$=10000(1+\frac{20\times 1}{100})=Rs12000$
After paying Rs 6000, the remaining sum
=Rs 6000
$\therefore$ Amount obtained in the next year
$=P(1+\frac{R\times T}{100})=6000(1+\frac{20\times 1}{100})=Rs7200$