A former borrowed Rs1,32,000 from a money lender to do cultivation in his field. The rate of interest is 12.5% per annum
compounded annually. At the end of two years, he cleared his loan by paying Rs1,07,062.50 and his scooter. The cost (in Rs) of
the scooter is:
This questions was previously asked in
SSC MTS 2nd Nov 2021 Shift-2
Explanation:
Let's break down the problem:
- Loan Details: Rs 1,32,000 borrowed at 12.5% compound interest per annum for two years.
- Formula Used: Compound Interest is calculated using A = P(1 + r/n)^(nt), where:
- P = Principal amount = Rs 1,32,000
- r = rate of interest = 0.125
- n = number of times interest is compounded per year = 1
- t = time in years = 2
- Total Amount After Two Years:
- A = 1,32,000 * (1 + 0.125)^2 = Rs 1,32,000 * 1.265625 = Rs 1,67,062.50
- Amount Cleared by Farmer: Rs 1,07,062.50 + value of scooter
- Value of Scooter: Rs 1,67,062.50 - Rs 1,07,062.50 = Rs 60,000
Correct Answer: 3, 60,000
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By: santosh