Ramesh borrowed ₹12000 at 13% per annum simple interest what amount will Ramesh pay to clear his debt after 5 years?
Answer & explanation
Correct answer: option 3
We know ,
Amount = Principal + Interest
Simple interest = \(\frac{Principal ×Rate × Time }{100}\)
= \(\frac{12000 × 13 × 5 }{100}\)
= 7800
Amount to be paid after 5 years = 12000 + 7800 = Rs.19800