Question

The amount of loan to be paid back if the principal is ₹ 5000 is taken at a rate of 11% interest per annum under simple interest for a period of 3 years will be equal to

• A. Rs. 6660
• B. Rs. 6760
• C. Rs. 6650
• D. Rs. 6640

Answer 1

The correct option is C

Rs. 6650

Using the formula $I=\frac{PTR}{100}$ and substituting

P = $₹5000,R=11\%,T=3$ years, we have

$I=\frac{5000\times 11\times 3}{100}=₹1650$

Amount $=P+I=5000+1650=₹6650$