Multiple choice

Ms. Ayesha borrowed Rs. 1000 at 5% per annum simple interest. What amount (in rupees) would she pay to clear her debt after 4 years?

  1. 200

  2. 1200

  3. 220

  4. 1300

  5. 1400
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest = (1000 * 5 * 4)/100 = 200. Amount = 1000 + 200 = 1200.

AI explanation

Using the simple interest formula, the interest accrued is calculated as (1000 * 5 * 4) / 100, which equals Rs. 200. To clear her debt, she must pay the principal plus this interest, making the total amount 1000 + 200 = Rs. 1200.

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