Deksha borrowed Rs. 500 at 5% per annum simple interest. 'What amount (in rupees) will she pay to clear her debt after 4 years?

Options

A. 150
B. 650
C. 600
D. 100

Answer

To solve the problem, we need to calculate the total amount Deksha will pay after 4 years, which includes both the principal and the simple interest.

### Step-by-Step Solution:

1. **Identify the given values**:
- Principal (P) = Rs. 500
- Rate of interest (R) = 5% per annum
- Time (T) = 4 years

2. **Calculate the Simple Interest (SI)**:
The formula for Simple Interest is:
\[ SI = \frac{P \times R \times T}{100} \]
Substituting the values:
\[ SI = \frac{500 \times 5 \times 4}{100} \]

3. **Perform the calculations**:
- First, calculate \(500 \times 5 = 2500\).
- Then, calculate \(2500 \times 4 = 10000\).
- Finally, divide by 100:
\[ SI = \frac{10000}{100} = 100 \]
So, the Simple Interest is Rs. 100.

4. **Calculate the Total Amount (A)**:
The total amount to be paid after 4 years is the sum of the principal and the simple interest:
\[ A = P + SI \]
Substituting the values:
\[ A = 500 + 100 = 600 \]

5. **Conclusion**:
The total amount Deksha will pay to clear her debt after 4 years is Rs. 600.

### Final Answer:
Deksha will pay Rs. 600 to clear her debt after 4 years.

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