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Arun borrowed a sum of Rs. 4000 at 5% pa SI for Ramu. He returned the amount with interest after 2 yrs. Ramu returns to Arun 3% of the total amount returned. How much did Ramu received overall? 
  • a)
    4168 
  • b)
    4400 
  • c)
    132 
  • d)
    4268 
Correct answer is option 'D'. Can you explain this answer?
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Arun borrowed a sum of Rs. 4000 at 5% pa SI for Ramu. He returned the ...
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Arun borrowed a sum of Rs. 4000 at 5% pa SI for Ramu. He returned the ...
Given:
Principal (P) = Rs. 4000
Rate of interest (R) = 5% p.a.
Time (T) = 2 years

Simple Interest (SI) = (P * R * T) / 100
SI = (4000 * 5 * 2) / 100
SI = Rs. 400

Amount to be returned = P + SI
Amount to be returned = Rs. 4000 + Rs. 400
Amount to be returned = Rs. 4400

Ramu returns 3% of the total amount returned to Arun, which is:
(3/100) * Rs. 4400 = Rs. 132

Therefore, Ramu received overall = Rs. 4400 - Rs. 132 = Rs. 4268.

Hence, the correct answer is option D.
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