Question

Surbhi borrowed Rs. 72000 at the rate of 12% per annum under compound interest. She repaid Rs. 40000 after one year. How much should she repay at the end of second year so that she clears the amount (in Rs.)?
1. 41516.8
2. 48516.8
3. 45516.8
4. None of the above

Answer 1

Correct Answer - Option 3 : 45516.8

Given:

Surbhi borrowed Rs. 72000 at the rate of 12% per annum under compound interest.

She repaid Rs. 40000 after one year.

Formula Used:

Amount after n years under compound interest = P × (1 + r/100)ⁿ

Calculation:

Amount that she needs to pay at the end of one year = Rs. {72000(1 + 12/100)} = Rs. 80640

⇒ Rs. (80640 – 40000) = Rs. 40640 principal for second year [As she repaid Rs. 40000 at the end of one year]

Amount that he needs to pay to clear = Rs. {40640 (1 + 12/100)} = Rs. 45516.8

∴ The required amount is Rs. 45516.8