Ankita borrowed a sum of ₹10,000 from a finance company at 8% per annum for 6 years. What is the amount returned by Ankita to the finance company?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹14,800
Where a question gives a rate per annum without saying “compound”, the interest is simple interest: the same amount is paid on the principal every year. The amount returned is the principal plus the interest.
Simple interest \(=\displaystyle\frac{10000\times8\times6}{100}=\) ₹4800
Amount returned \(=10000+4800=\) ₹14,800