Question
A man takes a loan of ₹6,000 from his friend on
1st January 2019 with the condition that he will repay with accrued simple interest at the rate 6.25%, as and when the interest touches ₹75. On which date does the loan period expire?Solution
Rate of interest for 1 month = 6.25/12% So, monthly interest = 6000 × 6.25/1200 ⇒ Rs. 31.25 So, to touch Rs. 75 it will take = 75/31.25 = 2.4 months or 72 days So, at 73rd day it will touch Rs. 75 So, 30 days in January + 28 days in February + 15 days in March = 73 days ∴ On 15th March 2019 the loan period got expired.
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