Multiple choice

Ms. Sushmitha borrowed Rs. 900 at 6% per annum simple interest. What amount (in Rs.) will she have to pay to clear her debt after 4 years?

  1. 261

  2. 1,161

  3. 1,116

  4. 216

  5. Na
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C Correct answer
Explanation

Interest = (P * R * T) / 100 = (900 * 6 * 4) / 100 = 216. Total amount = 900 + 216 = 1116.

AI explanation

Using the simple interest formula of principal multiplied by rate multiplied by time divided by 100, the interest is 900 multiplied by 6 multiplied by 4 and then divided by 100. This calculation gives an interest amount of Rs. 216. The total amount required to clear the debt is the sum of the principal and the interest, which is 900 plus 216 to equal Rs. 1116.

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