Question

Scheme a car loan of rs. 4 lakh at 12.5% rate of simple interest can be borrowed on a repayment term of lump sum amount at the end of 3 years. As per scheme (b), the amount can be repaid at the end of 2 years, but compound interest (compounded annually) would be charged at the same rate. What would be the difference in amount of interest between the two schemes?



a.Rs. 42,675



b.Rs. 43,750



c.Rs. 41,025



d.43,125

Answer 1

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