Multiple choice

Ms. Tanvi took a loan of Rs. 6,40,000 from a bank and paid back after 10 years at x% simple interest. The amount paid by her was Rs. 11,52,000. If she takes a loan of Rs. 50,000 from another bank at (x + 2)% compound interest, find the amount to be paid by her after 2 years at compound interest.

  1. Rs. 66,500

  2. Rs. 64,560

  3. Rs. 59,400

  4. Rs. 60,500

  5. Rs. 64,600
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

First loan: 1152000 = 640000 + (640000 * x * 10 / 100) -> 512000 = 64000x -> x = 8%. Second loan: P = 50000, R = 8+2 = 10%, T = 2 years. Compound Interest Amount = 50000 * (1.1)^2 = 50000 * 1.21 = 60500.

AI explanation

The Simple Interest formula gives 11,52,000 - 6,40,000 = (6,40,000 multiplied by x multiplied by 10) divided by 100, which simplifies to 5,12,000 = 64,000x and results in x = 8. The new loan of Rs 50,000 is at (x + 2)%, which is 10% compound interest. For two years, the compound interest is 10% of 50,000 for the first year plus 10% of 55,000 for the second year, yielding a total interest of Rs 10,500 and making the final amount to be paid Rs 60,500.

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