Mohan borrows a sum of ₹4,22,092 at the rate of 20% per annum simple interest.…
2024
Mohan borrows a sum of ₹4,22,092 at the rate of 20% per annum simple interest. At the end of the first year, he repays₹21,679 towards return of principal amount borrowed. If Mohan clears all pending dues at the 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?
- A.
556367
- B.
558380
- C.
561347
- D.
564914
Attempted by 3 students.
Show answer & explanation
Correct answer: D
Year 1 Interest:
Principal = ₹4,22,092.
Interest for Year 1 = 20% of 4,22,092 = 0.20 × 4,22,092 = ₹84,418.40.
End of Year 1 Repayment:
Mohan repays ₹21,679 towards the principal.
Remaining principal for Year 2 = 4,22,092 - 21,679 = ₹4,00,413.
Year 2 Interest:
Interest for Year 2 is calculated on the remaining principal.
Interest for Year 2 = 20% of 4,00,413 = 0.20 × 4,00,413 = ₹80,082.60.
Total Payment at the End of Year 2:
Total Payment = Remaining principal + Outstanding interest from Year 1 + Interest for Year 2.
Total Payment = 4,00,413 + 84,418.40 + 80,082.60 = ₹5,64,914.