Question
A car dealer borrows ₹20,000 from a bank for a period
of 2 years at a simple interest rate of 8% per annum. If he repays the loan in full at the end of the 2 year period, how much will he have to pay?Solution
Simple interest of the 2 years at rate of 8%=20000×16/100 SI=3200 He will pay after 2 years =20000+3200 =Rs.23200
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