Question

For buying a house, Kishorbhai borrowed Rs. 29,200 from the bank for 227 days at the rate of 12.5%. How much amount would he pay back at the end of the term?
A. Rs. 31,470
B. Rs. 32,485
C. Rs. 33,425
D. Rs. 33,455

Answer 1

Hint:The amount to be repaid is the submission of the amount borrowed from the bank in addition to the interest they filed for it.

Complete step-by-step answer:
According to the question, Kishorbhai borrowed ₹ 29,200 from the bank for 227 days at the rate of 12.5%.
We have to find the amount which Kishorbhai has to repay in due time of 227 days.
Now, the principal amount is the initial amount which is equal to the total money taken by Kishorbhai.
Therefore, principal = Rs. 29,200……………(1)
Time given to repay the borrowed money = 227 days =$\dfrac{{227}}{{365}}$years
Rate in percentage filed on the principal money is 12.5%
Now, the interest filed on this amount will be equal to –
Interest amount =$\dfrac{{PRT}}{{100}}$= $\dfrac{{29200 \times 12.5 \times \dfrac{{227}}{{365}}}}{{100}} = Rs.2270$……….(2)
Now, we have to calculate the total amount to be repaid by Kishorbhai. This amount will be equal to addition of interest and the principal amount borrowed. That is –
Total amount = principal + interest
From equation (1) and equation (2) we get the values of principal and interest. Thus,
Total amount = Rs. 29,200 + Rs. 2270
                         = Rs. 31470

So, the correct answer is “Option A”.

Note:While calculating the interest on the principal amount the time taken cannot be in weeks or days or hours it has to be in years.