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    Question

    Mandeep took a loan of Rs. 7,300 from his friend Sandeep

    on 16th March. The loan accrues simple interest at an annual rate of 20%. Calculate the total amount Mandeep needs to repay if he settles the loan on 30th May.
    A Rs. 7,550 Correct Answer Incorrect Answer
    B Rs. 7,480 Correct Answer Incorrect Answer
    C Rs. 7,620 Correct Answer Incorrect Answer
    D Rs. 7,600 Correct Answer Incorrect Answer
    E Rs. 7,580 Correct Answer Incorrect Answer

    Solution

    Time for which Mandeep borrowed amount = 15 + 30 + 30 = 75 days Simple interest = Principal X rate X time ÷ 36500, when time is in days Interest charged = 7,300 X 20 X 75 ÷ 36500 = Rs. 300 Therefore, required amount = 7,300 + 300 = Rs. 7,600

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