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Q.

A man borrowed Rs 6000 from a bank at a 6% annual interest rate. What is the amount he must pay after two and a half years?

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a

Rs. 5500

b

Rs. 6900

c

Rs. 7350

d

Rs. 8550

answer is B.

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Detailed Solution

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Given, Principal amount P = Rs. 6000

Time period T = 212 years = 52 years

Rate of interest R = 6% p.a.

Formula:

Simple interest = P × T × R100

Calculation:

SI = 6000 × 52 × 6100

SI = Rs. 900

Amount = Principal amount + Interest

A = Rs. 6000 + 900

A = Rs. 6900

Hence, the correct answer is Rs. 6900.

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