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.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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