Multiple choice

A borrows a sum of Rs 1000 from his friend B on 31 December 2015 on the condition that he will return the same after one year with the simple interest 12\%. However, A gets into a position of returning the money on 1 May 2016. How much amount he has to return to B?

  1. $1331.5$
  2. $1045$
  3. $1120$
  4. $1040$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Principal = Rs 1000, Rate = 12% per annum. Time period from Dec 31, 2015 to May 1, 2016 = 4 months 1 day = 121 days. Simple Interest = P × R × T / 365 = 1000 × 12 × 121 / (100 × 365) = 145200 / 36500 = Rs 39.78 ≈ Rs 40. Total amount = 1000 + 40 = Rs 1040.

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