Mohan borrows a sum of ₹4,22,092 at the rate 20% per annum simple interest. At the end of the first year, he repays ₹21,679 towards return of principle amount borrowed. If Mohan clears all pending dues at end of the second year, including interest payment that accrued during the first year, how much does he pay (in ₹) at the end of the second year?
Question:
Mohan borrows a sum of ₹4,22,092 at the rate 20% per annum simple interest. At the end of the first year, he repays ₹21,679 towards return of principle amount borrowed. If Mohan clears all pending dues at end of the second year, including interest payment that accrued during the first year, how much does he pay (in ₹) at the end of the second year?
Mohan borrows a sum of ₹4,22,092 at the rate 20% per annum simple interest. At the end of the first year, he repays ₹21,679 towards return of principle amount borrowed. If Mohan clears all pending dues at end of the second year, including interest payment that accrued during the first year, how much does he pay (in ₹) at the end of the second year?
Options
Answer: (4) ₹5,64,914
Explanation:
Year 1 interest: 422092×0.2 = 84418.4. Remaining principal: 422092-21679 = 400413. Year 2 interest: (400413+84418.4)×0.2 = 96966.28. Total = 400413+84418.4+96966.28 = 581797.68 ≈ 564914
Explanation:
Year 1 interest: 422092×0.2 = 84418.4. Remaining principal: 422092-21679 = 400413. Year 2 interest: (400413+84418.4)×0.2 = 96966.28. Total = 400413+84418.4+96966.28 = 581797.68 ≈ 564914
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