Ridhaan took a loan of ₹12,000 at the rate of 8% simple interest per annum. What amount will he have to pay after 6 months, if he decides to repay the entire loan amount with interest at that time?
Answer & explanation
Correct answer: option 2
6 months = 0.5 year
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
= \(\frac{12000 × 8 × 0.5 }{100}\)
= 480
Now ,
Amount = Principal + Interest
= 12000 + 480
= Rs. 12480