Question

Rekha obtained a loan of Rs 3000 from a cooperative bank for 2 years at the rate of 7% per annum. Find the simple interest she has to pay to the bank after 2 years.

Answer 1

Solution :

Rekha Loan details ,

Principal ( P ) = Rs 3000 ,

Time ( T ) = 2 years ,

Rate of interest ( R ) = 7% per annum

Let the simple interest = I

We know that ,

I = ( PTR )/100

= ( 3000 × 2 × 7 )/100

I = Rs 420

Now ,

Amount should be paid after 2 years

to bank ( A ) = P + I

= Rs 3000 + Rs 420

= Rs 3420

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