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Q.

A woman borrowed Rs 10000 from a bank at a 10% annual interest rate. What is the amount she must pay after five and a half years?

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a

Rs. 10000

b

Rs. 15000

c

Rs. 15500

d

Rs. 17860

answer is C.

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Detailed Solution

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Principal amount P = Rs. 10000

Time period T = 512 years = 112 years

Rate of interest R = 10% p.a.

Formula:

Simple interest = P × T × R100

Calculation:

SI = 10000 × 112 × 10100

SI = Rs. 5500

Amount = Principal amount + Interest

A = Rs. 10000 + 5500

A = Rs. 15500

Hence, the correct answer is Rs. 15500.

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