Question

Krishna takes a loan of 8000 at simple interest.
After four years he takes an additional loan of
14440. From that point, compound interest at
10% per annum is calculated on the total amount
repayable on the first loan as well as the second
loan. He repays a total of 30250 after two more
years to clear the entire loan amount. What is the
annual rate of simple interest?​

Answer 1

Answer:

8%

Step-by-step explanation:

Given:

• First loan with simple interest= 8000
• Simple interest rate= x,
• Second loan with compound interest= 14440
• Compound interest rate= 10%, time 2 years

Total amount on second loan

• 14440*1.1^2= 17472.4

Now, let's calculate the first loan with compounded interest for last 2 years:

It was amounted at the end of 6 years at:

• 30250-17472.4=12777.6

Removing compound interest for last 2 years:

• 12777.6/(1.1)^2= 10560

Interest for previous 4 years:

• 10560-8000=2560

Interest rate for same period:

• 1/4*2560/8000=0.08 = 8%

Answer is 8% simple interest rate for initial loan

Answer 2

Step-by-step explanation:

short method to do this