Question:

Ram borrows Rupees 520 from Govind at a simple interest of 13% per annum. What amount of money should Ram pay to Govind after six months to be absolved of the debt?

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Always convert months into years when using the simple interest formula. Half a year = 0.5 in time units.
Updated On: Aug 12, 2025
  • 552.80
  • 553.80
  • 453.80
  • 353.80
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The Correct Option is A

Solution and Explanation

Step 1: Formula for simple interest: \( SI = \frac{P \times R \times T{100 \).
Step 2: Here, \( P = 520 \), \( R = 13% \), \( T = \frac{6{12 = 0.5 \) years.
Step 3: Calculate interest: \( SI = \frac{520 \times 13 \times 0.5{100 = \frac{520 \times 6.5{100 = 33.80 \).
Step 4: Total amount = Principal + Interest = 520 + 33.80 = 552.80.
Step 5: Elimination: - Option (b) 553.80 — off by Re.1, calculation error.
- Option (c) 453.80 — smaller than principal, impossible in a loan repayment.
- Option (d) 353.80 — much less than principal, not possible.
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