Question
A person took a loan of Rs 1500 from an investor for at
20% p.a. on compound interest for 2 years. But he paid only 80% of amount after 2 years. And investor put some penalty on remaining amount. He paid Rs 520 with penalty amount after some time. Hence, find the value of penalty amount?Solution
P = Rs. 1500 R = 20% Therefore, total amount which has to be paid = 1500 × 144/100 = Rs. 15 × 144 Actual amount paid = 15 × 144 × 4/5 = Rs. 432 But after penalty amount paid = Rs. 520 Therefore, penalty given by person = 520 – 432 = Rs. 88
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