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Mr. X borrowed R.s 5120 at 12 ½ % p.a C.I.At the end of 3 yrs, the money was repaid along with the interest accrued. The ammount of interest paid by him is 
  • a)
    Rs. 2100
  • b)
    Rs. 2170
  • c)
    Rs. 2000
  • d)
    None of these 
Correct answer is option 'B'. Can you explain this answer?
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Mr. X borrowed R.s 5120 at 12½ % p.a C.I.At the end of 3 yrs, t...
Ans.

Option (b)

This is the case of simple Ci where Ci=A-p
[Latex] A=P*(1+I)^n [/latex]
[Latex] A=5120*(1+0.125)^3[/latex]
A=7290.
Ci=7290-5120=2170
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Mr. X borrowed R.s 5120 at 12½ % p.a C.I.At the end of 3 yrs, t...
% p.a. simple interest for a period of 2 years.

To calculate the interest charged on this loan, we can use the formula:

Simple Interest = (P × R × T) / 100

where P is the principal amount, R is the rate of interest, and T is the time period in years.

Substituting the given values in the formula, we get:

Simple Interest = (5120 × 12 × 2) / 100

Simple Interest = 1228.80

Therefore, the interest charged on the loan is Rs. 1228.80.
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Mr. X borrowed R.s 5120 at 12½ % p.a C.I.At the end of 3 yrs, the money was repaid along with the interest accrued. The ammount of interest paid by him isa)Rs. 2100b)Rs. 2170c)Rs. 2000d)None of theseCorrect answer is option 'B'. Can you explain this answer?
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