Question

Vidhya has taken a loan of ₹12,000 at the simple interest rate of 10% per annum for 5 years. If she paid ₹6,000 at the end of first year, how much will she pay at the end of 5 years?

• A. 10080

Answer 1

The correct option is A 10080
Loan = ₹12,000
Interest rate = 10% p.a.
Amount paid at the end of 1 year = ₹6,000
For first year,
S.I. = $\frac{PRT}{100}$
S.I. = $\frac{12000\times 10\times 1}{100}$
S.I. = ₹1,200
Amount = ₹12,000 + ₹1,200 = ₹13,200
Amount paid at the end of 1 year = ₹6,000
Amount left = ₹13,200 - ₹6,000 = ₹7,200
Remaing years = 5 - 1 = 4 years
S.I. = $\frac{7200\times 10\times 4}{100}$
S.I. = ₹2,880
Total amount = Principal after 1 year + S.I. for last 4 years
Total amount = ₹7,200 + ₹2,880 = ₹10,080