Question
A person borrows ₹5000 at 12% per annum simple
interest. He repays ₹3200 at the end of 2 years. How much does he still owe after 2 years?Solution
Interest for 2 years = ₹5000 × 12% × 2 = ₹1200. Total amount after 2 years = ₹5000 + ₹1200 = ₹6200. Amount still owed = ₹6200 - ₹3200 = ₹3000. Answer: d) ₹3000.
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