Multiple choice

Captain Rahul has taken a loan of 10 lakh from a bank on 6% per annum of simple interest for 10 years. After few years due to a policy for armed forces a discount is given to Captain Rahul on his loan and now he have to pay interest at 4% rate of interest per annum. If he had paid Rs. 14.8 lakh at the end then find after how many years he get the discount?

  1. 2

  2. 3

  3. 4

  4. 5

  5. 6
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total interest paid is Rs. 4.8 lakh (14.8 - 10). Let the discount be applied after t years. Interest for first t years at 6%: 10 × 0.06 × t = 0.6t lakh. Interest for remaining (10-t) years at 4%: 10 × 0.04 × (10-t) = 0.4(10-t) = 4 - 0.4t lakh. Setting total equal to 4.8: 0.6t + 4 - 0.4t = 4.8, giving 0.2t = 0.8, so t = 4 years.

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