Question

Girish bhai lends Rs. $47000$ to his friend Mohan bhai for $1$ year and $3$ months at the rate of $8\%$ . How much would he get from Mohan bhai at the end of the term?
A. Rs. $51000$
B. Rs. $51700$
C. Rs. $51900$
D. Rs. $52700$

Answer 1

Hint: We first start by converting the time period into years so we will divide the given number of months by 12 and then we will be finding the simple interest on the principal amount that is lend by Girish bhai and for this we will apply the formula formula for simple interest that is $S.I.=\dfrac{P\times R\times T}{100}$ . Then finally we will find the amount by adding the principal amount and the simple interest and get the answer.

Complete step by step answer:
We have to find the final amount received by Girish bhai. So, in the question we are given :
Principal = Rs. $47000$
Time period = $1$ year and $3$ months = $1+\dfrac{3}{12}=1+\dfrac{1}{4}=\dfrac{5}{4}$ years.
Rate of interest = $8\%$
First we will find out the interest paid by Mohan bhai, as we know that the formula for simple interest is as follows:
$S.I.=\dfrac{P\times R\times T}{100}$
Where, $P=$ Principal amount, $R=$ Rate of interest, $T=$ Time period
Now we will put the values from above to find out the simple interest:
$S.I.=\dfrac{P\times R\times T}{100}=\dfrac{47000\times 8\times 5}{100\times 4}=4700$
Now we have with us the simple interest as Rs. $4700$
Now the total amount which will be paid by Mohan bhai will be $A=P+S.I.$ ,
where $A=$ Total amount, $P=$ Principal amount, $S.I.=$ Simple Interest
Now we will put the values of all the three terms in order to get the total amount paid by Mohan bhai: $A=P+S.I.\Rightarrow A=47000+4700=51700$
So, the total amount paid will be Rs. $51700$ .

Hence, the correct option is B.

Note:
Remember that in the formula for simple interest the time period is mentioned in years only, so whenever we are given any other units convert them into years. Months can be converted by dividing them by $12$ whereas days can be converted by dividing them by $365$. Describe every formula and the terms used in it.