Multiple choice

A borrows a sum of Rs 2000 from his friend B on 31st December 2011 on the condition that he will return the same after one year with simple interest at 8% per annum. However, A gets into a position of returning the money on 1 July 2012. How much amount he has to return to B?

  1. 2200

  2. 2080

  3. 2088

  4. 2070
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Principal = Rs 2000, Rate = 8% per annum. Time from Dec 31, 2011 to July 1, 2012 = 6 months = 0.5 years. Simple Interest = P × R × T = 2000 × 0.08 × 0.5 = Rs 80. Total amount = Principal + Interest = 2000 + 80 = Rs 2080.

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