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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:OptionsRs. 125.50Rs. 115.50None of theseRs. 110

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:OptionsRs. 125.50Rs. 115.50None of theseRs. 110

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Solution 1

The calculation for this problem is as follows:

  1. 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.

  2. At the end of the first year, the person returns Rs. 100. So, the outstanding loan amount becomes Rs. 200 - Rs. 100 = Rs. 100.

  3. 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.

  4. 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. This would be Rs. 100 + Rs. 5 = Rs. 105.

Therefore, the correct answer is none of these options. The person would have to pay Rs. 105 at the end of the second year to clear his due.

This problem has been solved

Solution 2

The simple interest for the first year would be 5% of Rs. 200, which is Rs. 10. So, at the end of the first year, the person owes Rs. 200 + Rs. 10 = Rs. 210.

Since he returns Rs. 100 at the end of the first year, the outstanding amount becomes Rs. 210 - Rs. 100 = Rs. 110.

The simple interest for the second year would be 5% of Rs. 110, which is Rs. 5.50. So, at the end of the second year, the person owes Rs. 110 + Rs. 5.50 = Rs. 115.50.

So, in order to clear his due at the end of 2 years, he would pay Rs. 115.50.

This problem has been solved

Solution 3

The calculation for this problem is as follows:

  1. For the first year, the person has a loan of Rs. 200. The simple interest on this amount at 5% would be Rs. 200 * 5/100 = Rs. 10.

  2. At the end of the first year, the person returns Rs. 100. So, the outstanding loan amount becomes Rs. 200 - Rs. 100 = Rs. 100.

  3. For the second year, the person has a loan of Rs. 100. The simple interest on this amount at 5% would be Rs. 100 * 5/100 = Rs. 5.

  4. 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.

This problem has been solved

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