New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    A person lends Rs. 18,000 to a friend at a simple

    interest rate of 10% per annum. After 2 years and 6 months, the friend returns Rs. 12,000 and asks for an extension on the remaining amount. What is the new principal amount that the person will charge interest on for the next 6 months?
    A 7800 Correct Answer Incorrect Answer
    B 8100 Correct Answer Incorrect Answer
    C 9400 Correct Answer Incorrect Answer
    D 10500 Correct Answer Incorrect Answer
    E 11000 Correct Answer Incorrect Answer

    Solution

    Interest for 2.5 years = (18000 * 10 * 2.5) / 100 = 4500 Total amount owed = 18000 + 4500 = 22500 Remaining principal = 22500 - 12000 = 10500 Therefore, the new principal amount is Rs. 10,500.

    Practice Next