The sum he has to pay at the end of 73 days is Rs. 3806.25.
What is simple interest?
Simple interest is the interest based on the principal amount of a loan or the first deposit in a savings account at the same rate over a given time.
To calculate the sum he pays at the end of 73 days, we use the formula below.
Formula:
- A = P(1+RT/100)............ Equation 1
Where:
- A = Amount he has to pay back
- P = Principle
- R = Rate
- T = Time
From the question,
Given:
- P = Rs. 3750
- R = 7.5% per annum
- T = 73 days = (73/365) = 0.2 years
Substitute these values into equation 1
- A = 3750(1+7.5×0.2/100)
- A = 3750(1+0.015)
- A = 3750(1.015)
- A = Rs. 3806.25
Hence, the sum he has to pay at the end of 73 days is Rs. 3806.25.
Learn more about simple interest here: https://brainly.com/question/20690803
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