Question

Piyush takes a loan of 10,000. After 1 year, he takes another loan of 10,000 at double the rate of interest. If he has to pay interest at simple rate of interest & settles the loan by paying ₹ 23,600 at the end of two years, what is the initial rate of interest he has to pay?​

Answer 1

Dear Student,

◆ Answer -

9 p.c.p.a

● Explanation -

Let x be initial rate of interest.

Initially Piyush takes loan of 10000 for 2 years at rate x pcpa.

SI1 = P × t × r/100

SI1 = 10000 × 2 × x/100

SI1 = 200 x

After 1 year, Piyush takes loan of 10000 for 1 year at rate 2x pcpa.

SI2 = P × t × r/100

SI2 = 10000 × 1 × 2x/100

SI2 = 200 x

Total interest is given by -

SI1 + SI2 = Total - P

200x + 200x = 23600 - 2×10000

400x = 23600 - 20000

400x = 3600

x = 3600/400

x = 9 p.c.p.a

Hence, initial rate of interest is 9 p.c.p.a.

Thanks dear. Hope this helps you...