A sum of ₹10,000 is taken as a loan by Rajesh at a rate of 15% p.a. simple interest for 2 years. But Rajesh could not repay it at the agreed time and asked for an extension of two more years. So, the lender included the interest amount for the period as principal for the next two years at the same rate of interest. The total amount paid by Rajesh at the end of 4 years is:
₹16,900
Step 1: Calculate Simple Interest (SI) for the first 2 years:
\( SI = \frac{P \times R \times T}{100} \)
\( SI = \frac{10,000 \times 15 \times 2}{100} = 3,000 \)
New Principal after 2 years = ₹10,000 + ₹3,000 = ₹13,000
Step 2: Calculate SI for the next 2 years on the new principal:
\( SI = \frac{13,000 \times 15 \times 2}{100} = 3,900 \)
Total amount to be paid = ₹13,000 + ₹3,900 = ₹16,900
Thus, the correct answer is option 1.
Similar Questions
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Important Questions from Simple and Compound Intrest
The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. The rate of interest per annum is?
A sum of Rs. 2000 amounts to Rs. 4000 in two years at compound interest. In how many years does the same amount becomes Rs. 8000?
If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, the compound interest on the same at the same rate and for the same time is:
- Amit invested equal amounts at simple interest and compound interest, compounded annually, for 2 years at the same rate of 4% per annum. In the end, he found a difference of ₹53 between the two interests earned. What was the amount (in ₹) invested in each case?
- The simple interest on a certain sum for $2\frac{6}{7}$ years at the rate of 7.7% per annum is ₹1,188.
What will be the amount payable on the same sum at the rate of 8.5% per annum simple interest in $4\frac{5}{9}$ years?
