Question

A sum of ₹ 10,000 is borrowed at a rate of interest 15% per annum for 2 years. Find the simple interest on this sum and the amount to be paid at the end of 2 years.

Answer 1

On ₹ 100, the interest charged for 1 year is ₹ 15.

So, on ₹ 10,000, interest charged = `15/100 xx 10000` = ₹ 1500

Interest for 2 years = ₹ 1500 × 2 = ₹ 3000.

Amount to be paid at the end of 2 years = Principal + Interest

= 10000 + 3000

= ₹ 13000