Multiple choice

X draws a bill on Y for 5,000 for 3 months. Before the due date, Y sends 1/5th of the amount to X. Y requested X to draw a new bill for the balance amount plus interest @ 12% p.a. for 3 months. Find the amount of the new bill.

  1. 5,150

  2. 4,140

  3. 4,120

  4. 5,440
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Original bill = 5000. Y pays 1/5 = 1000. Balance = 4000. Interest on 4000 for 3 months at 12% = 4000 * 0.12 * (3/12) = 120. New bill = 4000 + 120 = 4120.

AI explanation

Y pays one-fifth of the 5000 bill, which is 1000, leaving a balance of 4000. The interest on this balance for 3 months at 12 percent per annum is calculated using the simple interest formula as 4000 multiplied by 12, multiplied by 3, divided by 100, divided by 12, resulting in 120. The new bill amount is the sum of the unpaid balance and the interest, which is 4000 plus 120, totaling 4120.

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