Question

Ramesh borrowed Rs. 8000 for 3 years at $1\% $ per annum. The amount he has to pay to clear off his debt is
A) Rs. 9260
B) Rs. 7240
C) Rs. 9240
D) Rs. 8240

Answer 1

Hint: If P is the principal amount T is a time in years and r is the rate of interest then, the amount he has to pay with simple interest is given as $A = P\left( {1 + \dfrac{{RT}}{{100}}} \right)$. We will use this formula to find the answer.

Complete step-by-step answer:
Given that
$
  P = Rs.8000 \\
  T = 3years \\
  R = 1\% \\
$
The total amount is given as
$A = P\left( {1 + \dfrac{{RT}}{{100}}} \right)$
Now, substituting these values in the formula of amount we will get.
\[
   \Rightarrow A = P\left( {1 + \dfrac{{RT}}{{100}}} \right) \\
   \Rightarrow A = 8000\left( {1 + \dfrac{{3 \times 1}}{{100}}} \right) \\
   \Rightarrow A = 8000\left( {\dfrac{{103}}{{100}}} \right) \\
   \Rightarrow A = Rs.8240 \\
 \]
Hence, the amount he has to pay to clear off his debts is Rs. 8240 and the correct option is “D”.

Note: In order to solve these types of questions in which total amount or rate, time or principal amount is asked. First step is you must remember the formula to find these quantities. Second search for the values given in the question or conditions to find these values. After finding the values substitute them in the formula and you will get the answer.