Multiple choice

A person takes a loan of Rs. 1500 on simple interest at the rate of 6%. He returns Rs. 1200 at the end of 1 year. In order to clear his loan at the end of 2 years, he would pay:

  1. Rs. 415.4

  2. Rs. 318

  3. Rs. 406

  4. Rs. 413.4
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Loan=1500, rate=6% SI. Interest after 1 year=1500×0.06×1=90. Amount owed after 1 year=1500+90=1590. After paying 1200, remaining=390. This 390 accrues interest for 2nd year: 390×0.06×1=23.40. Total due after 2 years=390+23.40=413.40.

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