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    • Question

      Bank lends ₹50 lakh for 2 years at 10% interest p.a.

      The borrower prepays ₹20 lakh after 1 year. What is total interest earned?
      A ₹10 lakh Correct Answer Incorrect Answer
      B ₹9 lakh Correct Answer Incorrect Answer
      C ₹8 lakh Correct Answer Incorrect Answer
      D ₹7 lakh Correct Answer Incorrect Answer
      E ₹6 lakh Correct Answer Incorrect Answer

      Solution

      Year 1: ₹50 lakh × 10% = ₹5 lakh Year 2: ₹30 lakh × 10% = ₹3 lakh Total = ₹5 lakh + ₹3 lakh = ₹8 lakh 

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