Multiple choice

A person takes a loan of Rs. 200 at 5% simple interest. He returns Rs. 100 at the end of 1 year. In order to clear his dues at the end of two years, he would pay

  1. Rs. 105

  2. Rs. 110

  3. Rs. 115

  4. Rs.115.50
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Principal = 200, Rate = 5%. Interest for 1st year = 200 * 0.05 = 10. Total amount = 210. He pays 100, remaining balance = 110. Interest for 2nd year on 110 = 110 * 0.05 = 5.50. Total to pay = 110 + 5.50 = 115.50.

Keep practicing — related questions