Question

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

Answer 1

SOLUTION

Amount to be paid;

$= > </strong><strong>R</strong><strong>s .100 + \frac{200 \times 5 \times 1}{</strong><strong>100</strong><strong>} + \frac{100 \times 5 \times 1}{100} = rs.115$

Total amount to be paid at the end of 1st year = Rs.200+ 200×5×1/100 =210Rs

Amount paid at the end of 1st year=100

Amount left at the end of 1st year=210-100 =110

Now, amount to be paid at the end of 2nd year

$= > </strong><strong>R</strong><strong>s.110 + \frac{110 \times 5 \times 1}{100} \\ \\ = > 110 + 5.50 \\ \\ = ></strong><strong>R</strong><strong>s. 115.50$

Hope it helps ☺️