A man borrows Rs. 600 from his friend. He agrees to pay it back after 8 months together with simple interest at 8% per annum. What amount will he pay back?a)Rs. 32b)Rs. 384c)Rs. 984d)Rs. 632Correct answer is option 'D'. Can you explain this answer?

Question

Answer

Given:
Principal amount (P) = Rs. 600
Time (t) = 8 months = 8/12 years
Rate of interest (R) = 8% per annum

To find:
Amount to be paid back

Formula used:
Simple Interest (SI) = (P x R x t)/100
Amount (A) = P + SI

Calculation:
Simple Interest (SI) = (P x R x t)/100
= (600 x 8 x 8/12)/100
= Rs. 32

Amount (A) = P + SI
= 600 + 32
= Rs. 632

Therefore, the man will have to pay back Rs. 632.

Option D is the correct answer.

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