A farmer borrowed Rs1,32,000 from a money lender to do cultivation in his field. The rate of interest is 12.5% p.a. 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 20th October 2021 Shift-2
Explanation:
To calculate the cost of the scooter:
- Principal Amount: Rs 1,32,000
- Interest Rate: 12.5% p.a., compounded annually
- Time Period: 2 years
Calculation for Amount using Compound Interest Formula:
- Formula: A = P(1 + r/n)^(nt)
- Where:
- P = Principal amount = 1,32,000
- r = interest rate = 12.5/100 = 0.125
- n = number of times interest applied = 1
- t = time period = 2
- Amount (A): = 1,32,000(1 + 0.125)^2
- A = 1,32,000 x 1.265625 = 1,67,062.50
- Total Payment Made: Rs 1,07,062.50 + Scooter
- Cost of Scooter:
= Total Amount Required - Total Payment Made
= Rs 1,67,062.50 - Rs 1,07,062.50
= Rs 60,000
- Correct Answer: Option 4 - 60,000
![]()
By: santosh