Question

Anita takes a loan of Rs. 5,000 at 15% per year as the rate of interest. Find the interest she has to pay at the end of one year.

Answer 1

The sum borrowed = Rs. 5,000, Rate of interest = 15% per year.
This means if Rs. 100 is borrowed, she has to pay Rs. 15 as interest for one year.

If she has borrowed Rs. 5,000, then the interest she has to pay for one year.
= Rs. `15/100 × 5000 = Rs. 750.`

So, at the end of the year she has to give an amount of Rs. 5,000 + Rs. 750 = Rs. 5,750.