Question

What sum of money borrowed on ${24}^{th}$ May will amount to $Rs.10,210.20$ on ${17}^{th}$ October of the same year at $5\%$ per annum simple interest?

• A. Rs.$9,811$
• B. Rs.$10,010$
• C. Rs.$8,911$
• D. Rs.$9,807$

Answer 1

The correct option is B Rs.$10,010$

Amount $=Rs.10,210.20$

$R=5\%$p.a

$T=24th$ May to $17th$ October

There are $(7+30+31+31+30+17)=146$ days between $24th$ May and $17th$ October

$T=146$days $=\frac{146}{365}$ years

Amount$=\frac{PRT}{100}+P\times (1+\frac{RT}{100})$

$10210.20\times 100=P\times (100+5\times \frac{146}{365})P=\frac{1021020}{100+2}=\frac{1021020}{102}=10010$

$\therefore$ The money borrowed must be $Rs.10,010$.