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?
    A 12,500 Correct Answer Incorrect Answer
    B 12,880 Correct Answer Incorrect Answer
    C 13,440 Correct Answer Incorrect Answer
    D 14,450 Correct Answer Incorrect Answer

    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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