Question

A music company offers a loan to buy a drum set for Rs 15000 at 11,8% simple interest for 2 years what is the amount paid to clear the loan

Answer 1

SI=P×R×T/100
=15000×11.8×2/100
=3540

Amount=p+si
=15000+3540
=Rs.18540

He will have to pay Rs.18540 after 2 years.

Answer 2

15000×2×118/100×10= 3540
Therefore simple interest = 3540
Now, amount to be paid after 2 yrs= 15000+3540