A person takes a loan of Rs. 200 at 5% simple interest on the outstanding amount. He returns Rs. 100 at the end of one year. In order to clear his due at the end of 2 years, he would pay:
Question
A person takes a loan of Rs. 200 at 5% simple interest on the outstanding amount. He returns Rs. 100 at the end of one year. In order to clear his due at the end of 2 years, he would pay:
Solution 1
Step 1: Calculate the interest for the first year. The simple interest formula is I = PRT/100, where P is the principal amount, R is the rate of interest, and T is the time in years. So, for the first year, I = 20051/100 = Rs. 10.
Step 2: Subtract the amount paid at the end of the first year from the initial loan amount. The person pays Rs. 100 at the end of the first year, so the outstanding amount is 200 - 100 = Rs. 100.
Step 3: Add the interest for the first year to the outstanding amount. The outstanding amount after adding the interest for the first year is 100 + 10 = Rs. 110.
Step 4: Calculate the interest for the second year. Again using the simple interest formula, for the second year, I = 11051/100 = Rs. 5.5.
Step 5: Add the interest for the second year to the outstanding amount. The total amount to be paid at the end of the second year is 110 + 5.5 = Rs. 115.5.
So, to clear his due at the end of 2 years, the person would pay Rs. 115.5.
Solution 2
Step 1: Calculate the interest for the first year. The simple interest formula is I = PRT/100, where P is the principal amount, R is the rate of interest, and T is the time in years. So, I = 20051/100 = Rs. 10
Step 2: Calculate the outstanding amount at the end of the first year. The person returns Rs. 100 at the end of the first year, so the outstanding amount is 200 (initial loan) - 100 (repayment) + 10 (interest) = Rs. 110
Step 3: Calculate the interest for the second year. Again using the simple interest formula, I = 11051/100 = Rs. 5.5
Step 4: Calculate the total amount to be paid at the end of the second year. The total amount to be paid is the outstanding amount at the end of the first year plus the interest for the second year, which is 110 + 5.5 = Rs. 115.5
So, the person would pay Rs. 115.5 at the end of the second year to clear his due.
Similar Questions
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