Multiple choice

Shantanu borrowed Rs. 2.5 lakh from a bank to purchase one car. If the rate of interest be 6% per annum compounded annually, what payment he will have to make after 2 years 6 months?

  1. Rs. 189315

  2. Rs. 389335

  3. Rs. 489425

  4. Rs. 289325

  5. None of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amount after 2 years = 250000 × (1.06)² = 250000 × 1.1236 = Rs. 280900. For next 6 months, apply simple interest: 280900 × 6/100 × 0.5 = Rs. 8427. Total = 280900 + 8427 = Rs. 289327. Option D matches.