Damani purchased an item costing ₹7,500 and paid ₹3,500 as a down payment for the same. If the simple interest charged for the remaining amount is 9% per annum and Damani cleared all dues after 4 months of the purchase, how much did Damani pay after 4 months as interest?

Question

Question

This question was previously asked in

SSC CGL 2022 Tier-I Official Paper (Held On : 01 Dec 2022 Shift 4)

Answer 1

Given:

Purchased an item at Rs. 7500

Down-payment paid = Rs. 3500

Rate = 9%

Time = 4 months

Formula used:

SI = \(\dfrac{principle × rate × time}{100}\)

1 year = 12 months

4 month = \(\dfrac{4}{12}\)

Calculations:

Amount left to be paid = Rs. (7500 - 3500) = Rs. 4000

SI = \(\dfrac{4000 × 9 × 4}{12 × 100}\)

= 40 × 3 = 120

∴ The answer is Rs. 120