Question

The amount to be paid back if the principal of ₹ 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. ₹ 6660
• B. ₹ 6650
• C. ₹ 6640
• D. ₹ 6760

Answer 1

The correct option is B

₹ 6650

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).

Here, P = ₹ 5,000, R = 11%, T = 3 years

So, $S.I.=\frac{5000\times 11\times 3}{100}=₹1650$

Amount = Principal + Interest =₹ 5000 + ₹ 1650 = ₹ 6,650