Question
Download Solution PDFA person takes a loan of Rs. 300 at 10% simple interest. He returns Rs. 60 at the end of 1 year. In order to clear his dues at the end of 2nd year he would pay :
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Principal = Rs.300
SI at 10% rate.
Sum returned at one year = Rs.60
Formula used:
SI = (P × R × T)/100
Calculation:
According to the question,
SI = 300 × 10 × 1/100
⇒ 30
⇒ And the amount paid at end of 1 year = Rs.60
⇒ Principal for second year = 300 - 60 = Rs.240
⇒ Interest for 2nd year = 240 × 10 × 1/100 = Rs. 24
So,
⇒ The amount payable after the end of 2nd year = Rs.240 + 30 + 24 = Rs. 294
∴ The correct answer is Option 1)
Mistake Points
The question deals with Simple Interest, not Compound Interest.
So, The interest of 1st year which is Rs. 30 will not be added to the remaining principle which is after paying back Rs. 60 at the end of 1st year.
i.e. the principal for 2nd year is Rs. 240, not 270.
Last updated on May 13, 2024
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