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Q.

200 rupees were lent by Jenny to her friend Raj at a rate of 5% per annum. Six months later, Raj returned the amount with interest. The total amount paid by Raj is ______.

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a

Rs 100

b

Rs 105

c

Rs 200

d

Rs 205

answer is D.

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Detailed Solution

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Given, 

Principal amount P = Rs 200

Time period T = 6 months = 12 year

Rate of interest R = 5% p.a.

We know that, 

Simple interest = P × T × R 100

SI = 200 × 12 × 5 100

SI = Rs 5

Total amount paid by Raj to Jenny after 12 year is,

= Principal amount + Interest

= Rs 200 + Rs 5 

= Rs 205

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