Ms. Ayesha borrowed Rs. 1000 at 5% per annum simple interest. What amount (in rupees) will she pay to clear her debt after 4 years?

Show answer & explanation

Answer: (B) 1200

Explanation

SI = 1000 × 5 × 4/100 = Rs 200. The amount to pay = 1000 + 200 = Rs 1200.