Anil borrows Rs 2 lakhs at an interest rate of 8% per annum, compounded half-yearly. He repays Rs 10320 at the end of the first year and closes the loan by paying the outstanding amount at the end of the third year. Then, the total interest, in rupees, paid over the three years is nearest to:
Question:
Anil borrows Rs 2 lakhs at an interest rate of 8% per annum, compounded half-yearly. He repays Rs 10320 at the end of the first year and closes the loan by paying the outstanding amount at the end of the third year. Then, the total interest, in rupees, paid over the three years is nearest to:
Anil borrows Rs 2 lakhs at an interest rate of 8% per annum, compounded half-yearly. He repays Rs 10320 at the end of the first year and closes the loan by paying the outstanding amount at the end of the third year. Then, the total interest, in rupees, paid over the three years is nearest to:
Options
Answer: 51311
Explanation:
After 1 year at 8% p.a. compounded half-yearly (4% per half-year): Amount = 200000(1.04)² = 216320. After repayment = 206000. After 3 years total: 206000(1.04)⁴ ≈ 241311. Interest paid = 10320 + (241311−200000) = 51311.
Explanation:
After 1 year at 8% p.a. compounded half-yearly (4% per half-year): Amount = 200000(1.04)² = 216320. After repayment = 206000. After 3 years total: 206000(1.04)⁴ ≈ 241311. Interest paid = 10320 + (241311−200000) = 51311.
👉 Want AI explanation? Open in MCQ App
Recommended articles
- How To Cover Current Affairs For Upsc Prelims — Master UPSC Current Affairs with daily newspaper reading, Vision IAS monthly compilations, PT 365, and MCQ practice. Complete strategy guide for Prelims…
- Top 10 Daily Current Affairs Resources For Upsc Aspirants — Discover the best daily current affairs resources for UPSC 2026. Complete guide with The Hindu, PIB, Sansad TV, and 7 more proven sources. Expert…
- Free Cat Previous Year Questions Guide — Master CAT 2025 with free previous year questions. Practice 1000+ PYQs, mock tests, and detailed solutions. Complete guide to CAT preparation using past…