Question

Cynthia has borrowed Rs. 6,000 at the rate of 7% S.I. What amount does she need to pay after 3 years to clear the debt?

• A. Rs. 7,500
• B. Rs. 7,260
• C. Rs. 6,100
• D. Rs. 6,300

Hint:

Simple Interest is calculated on the original principal, which does not increase over time, unlike compound interest.

Answer 1

The Correct Option is B

Step 1: Calculate the total interest. The simple interest \( I \) is calculated using the formula: \[ I = P \times r \times t \] Where \( P = 6000 \) rupees, \( r = 0.07 \) (7%), and \( t = 3 \) years. \[ I = 6000 \times 0.07 \times 3 = 1260 \text{ rupees} \]

Step 2: Calculate the total amount to be repaid. \[ \text{Total amount} = P + I = 6000 + 1260 = 7260 \text{ rupees} \]