Question
A person lends ₹16,000 to a client at a simple
interest rate of 8% per annum. After 30 months, the client repays ₹9,200 and requests an extension for the remaining amount. What will be the total amount repaid by the client after the next 18 months?Solution
Interest for 30 months (2.5 years) on Rs. 16,000 SI = {16000 × 8 × 2.5}/100 = 3200 Total amount owed after 30 months = 16000 + 3200 = 19,200 Remaining principal after paying Rs. 9,200 = 19,2000 - 7200 = 12,000 total amount paid by the client after next 18 months = 12,000+ {12000 × 8 × 1.5}/100 = 12,000+1440 = 13,440
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