Mr. Akram borrowed 500 from the bank for a period of 4 years. if the interest rate is 11 % per annum, what would the amount of interest he has to pay back in addition to the principal amount?

A) 100

B) 220 ✓

C) 200

D) 210

Solution:

Principal = Rs.500

Time = 4 years

Rate of interest = 11%

Formula : 

Where P = Principal

T= time

R = rate of interest

Substitute the values in the formula :

SI = 220

Hence the  amount of interest the has to pay back in addition to the  principle amount is Rs.220