CA Foundation · Quantitative Aptitude · Mathematics of Finance
A sum of ₹12,000 is lent at simple interest for 3 years at 7.5% per annum. What is the total amount repayable at the end of the period?
The amount repayable is ₹14,700. Simple interest is 12,000 × 7.5% × 3 = ₹2,700, and adding this to the principal of ₹12,000 gives the total amount. The figure ₹2,700 alone is only the interest, not the amount.
- A₹14,700Correct
- B₹2,700
- C₹14,400
- D₹15,000
Explanation
Interest = 12,000 × 7.5 × 3 / 100 = ₹2,700. Amount = principal + interest = 12,000 + 2,700 = ₹14,700. Option ₹2,700 is only the interest and omits the principal.
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