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Question : Ridhaan took a loan of INR 12,000 at the rate of 8% simple interest per annum. What amount will he have to pay after 6 months, if he decides to repay the entire loan amount with interest at that time?

Option 1: INR 12,580

Option 2: INR 12,480

Option 3: INR 14,690

Option 4: INR 13,720


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: INR 12,480


Solution : Loan Amount = INR 12,000
Rate of Interest = 8% per annum
Time = 6 months
Simple Interest = $\frac{P\times R\times T}{100}$
where $P$ is the amount, $R$ is the rate and $T$ is the time.
As given, Time = 6 months = $\frac{6}{12}$ = 0.5 years
Amount to be paid after six months = $12000 + \frac{12000\times 8 \times 0.5}{100}$ 
= 12000 + 480 = INR 12480
So, the amount to be paid after 6 months with interest is INR 12,480.
Hence, the correct answer is INR 12,480.

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