Multiple choice

What sum of money borrowed on $14^{th}$ june will amount to Rs $10,210.20$ on $7^{th}$ November of the same year at $5$ per cent per annum simple interest.

  1. Rs.$11,110$
  2. Rs.$9,015$
  3. Rs.$10,010$
  4. Rs.$10,520$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Time from June 14 to Nov 7: June(16) + July(31) + Aug(31) + Sept(30) + Oct(31) + Nov(7) = 146 days. 146 days = 146/365 = 0.4 years. Amount = P(1 + RT/100). 10210.20 = P(1 + (5*0.4)/100) = P(1 + 0.02) = 1.02P. P = 10210.20 / 1.02 = 10010.

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