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

Answer: Option A

Solution(By Examveda Team)

$$\eqalign{ & {\text{She paid}} = 3500 \cr & {\text{Left amount}} = 7500 - 3500 = 4000 \cr & {\text{S}}{\text{.I}}{\text{.}} = \frac{{4000 \times 9 \times 4}}{{100 \times 12}} = 120 \cr} $$