Question

A person takes a loan of rs. 200 at 5% simple interest. He returns rs. 100 at the end of 1 year. In order to clear his dues at the end of 2 years, he would pay:

Answer 1

Explanation:

5% Simple interest of 200

200×5/100= 10Rs

Interest at the end of 1 year= 200×5×1/100

Interest = 10Rs

The Amount at the end of 2nd year will be

Interest = Principle×Rate×Time/100

Interest= 200×5×2/100

Interest= 20

Total Amount He should be given at the end of 2 years in order to clear his dues

Principal+Interest=Amount

200+20= 220 Rs