Multiple choice

A man borrows Rs. $10,000$ at $8$% p.a. simple interest fot $2$ years. He repays Rs.$ 10,000$ at the end of two years and the balance at the end of the third year. How much (in Rs.) did he repay at the end of the third year?

  1. $600$
  2. $1600$
  3. $160$
  4. $0$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The simple interest for two years is 10000 x 8/100 x 2 = Rs. 1600. The total due is Rs. 11600, and after repaying Rs. 10000, the balance is Rs. 1600.

AI explanation

The interest on the principal of Rs. 10000 at 8% p.a. for the first two years is calculated as (10000 * 8 * 2) / 100, which equals Rs. 1600. Since he repays the Rs. 10000 principal at the end of the second year, the remaining balance is only the accumulated interest of Rs. 1600. Because he clears the principal before the third year, there is no additional interest charged for the third year, making his final repayment at the end of the third year Rs. 1600.

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