At simple interest Gaurav borrows ₹1,500 from Sandeep at the rate of 14% per annum. What amount of money should Gaurav pay to Sandeep after 1 year to clear the debt?
Answer & explanation
Correct answer: option 2
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
= \(\frac{1500 ×14 × 1 }{100}\)
= 210
Amount paid to Sandeep by Gaurav = 1500 + 210 = 1710