Mohan borrows a sum of Rs 4,22,092 at the rate of 20% per annum simple interest. At the end of the first year, he repays Rs 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 Rs) at the end of the second year?
Options
a) 564914
b) 561347
c) 556367
d) 558380
Solution
As per question
1st year
P = 4,22,092
R = 20%
T = 1 year
S.I =
S.I =
S.I = 84418.4
2nd year
P = 422092 – 21679 = 400413
R = 20%
T = 1 year
S.I =
S.I =
S.I = 80082.6
S.I of 1st year and 2nd year = 84418.4 + 80082.6 = 164501
Second year pay = principle + S.I
400413 + 164501 = 564914
Answer: a) 564914