A person borrows Rs. 1,00,000 from a bank at 10% per annum simple int…

Question

A person borrows Rs. 1,00,000 from a bank at 10% per annum simple interest and clears the debt in five years. If the instalment paid at the end of the first, second, third and fourth years to clear the debt are Rs. 10,0…

Accepted Answer

Option B. Rs. 39,490. Answer & Solution Answer: Option B Solution: & Interest at the end of 1^ st year & = 1,00,000 × 10100 & = 10,000 & Paid amount = 10,000 & Rest amount & = 1,10,000 - 10,000 & = 1,00,000 & Interest for 2^ nd year = 10,000 & Amount paid = 20,000 & Remaining amount & = 1,10,000 - 20…