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:OptionsNone of theseRs. 110Rs. 125.50Rs. 115.50
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:OptionsNone of theseRs. 110Rs. 125.50Rs. 115.50
Solution
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 person would have to pay Rs. 105 at the end of the second year to clear his due. However, this option is not given in the question. So, the correct answer is 'None of these'.
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