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Damani purchased an item costing Rs.7,500 and paid Rs.3,500 as a down payment for the same. If the simple interest charged for the remaining amount is
Question

Damani purchased an item costing Rs.7,500 and paid Rs.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?

A.

Rs. 120

B.

Rs. 100

C.

Rs. 132

D.

Rs. 125

Correct option is A

Balance amount = 7500 - 3500 = 4000
Interest for 4 months = 9%/3 = 3%
Interest paid = 4000 × 3/100 = 120

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