Select the correct answerA 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:OptionsRs. 115.50Rs. 110Rs. 125.50None of these
Question
Select the correct answerA 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:OptionsRs. 115.50Rs. 110Rs. 125.50None of these
Solution 1
The calculation for this problem is as follows:
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For the first year, the person has a loan of Rs. 200. The simple interest on this amount for one year at 5% would be Rs. 200 * 5/100 = Rs. 10.
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At the end of the first year, the person returns Rs. 100. So, the outstanding loan amount becomes Rs. 200 - Rs. 100 = Rs. 100.
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For the second year, the person has a loan of Rs. 100. The simple interest on this amount for one year at 5% would be Rs. 100 * 5/100 = Rs. 5.
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So, at the end of the second year, the person would have to pay the outstanding loan amount plus the interest for the second year, which is Rs. 100 + Rs. 5 = Rs. 105.
However, none of the options match this answer. So, the correct answer is "None of these".
Solution 2
The calculation for this problem is as follows:
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For the first year, the person has a loan of Rs. 200. The simple interest on this amount for one year at 5% would be Rs. 200 * 5/100 = Rs. 10.
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At the end of the first year, the person returns Rs. 100. So, the outstanding loan amount becomes Rs. 200 - Rs. 100 = Rs. 100.
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For the second year, the person has a loan of Rs. 100. The simple interest on this amount for one year at 5% would be Rs. 100 * 5/100 = Rs. 5.
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So, at the end of the second year, the person would have to pay the outstanding loan amount plus the interest for the second year, which is Rs. 100 + Rs. 5 = Rs. 105.
Therefore, the correct answer is none of these.
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