Question

Rishav takes a loan of rupees 10000 from a bank for a period of 1 year. The rate of interest is 10%

per annum. Find the interest and the amount he has to the pay at the end of a year.
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Answer 1

The simple interest on the given principal after 1 year = Rs. 1,000

The amount Rishav has to pay after an year = Rs 11,000

Explanation:

Here, the Principal amount taken = Rs 10,000

Rate of Interest = 10%

Time Period = 1 year

Now, the SIMPLE INTEREST =
`(P * R * T)/(100)`

or,
`SI = (10,000 * 10 * 1)/(100)  = 1,000`

So, the simple interest on the given principal after 1 year = Rs. 1,000

Now, Amount = Principal + Simple Interest

or , A = 10,000 + 1,000 = 11, 000

Hence, the amount Rishav has to pay after an year = Rs 11,000