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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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