Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
A man took out a 30,000 loan from a bank at a simple interest rate of 12% annually. After two years, he gave the bank $15,200. How much will he have to pay to repay the loan in two more years? [Answer Limit: 125 words] [UKPSC 2012]
To find out how much the man will have to pay after two more years, we first calculate the simple interest for the initial two years.
Principal (P): ₹30,000
Rate (R): 12% per annum
Time (T): 2 years
Interest (I) after 2 years:
𝐼
=
𝑃
×
𝑅
×
𝑇
=
30000
×
12
100
×
2
=
₹
7200
I=P×R×T=30000×
100
12
×2=₹7200
Total amount due after 2 years:
Total Amount
=
𝑃
𝑟
𝑖
𝑛
𝑐
𝑖
𝑝
𝑎
𝑙
+
𝐼
𝑛
𝑡
𝑒
𝑟
𝑒
𝑠
𝑡
=
30000
+
7200
=
₹
37200
Total Amount=Principal+Interest=30000+7200=₹37200
After paying ₹15,200, the outstanding balance is:
Outstanding Balance
=
37200
−
15200
=
₹
22000
Outstanding Balance=37200−15200=₹22000
Now, for the next 2 years, calculate the interest on the remaining balance:
Interest for 2 more years
=
22000
×
12
100
×
2
=
₹
5280
Interest for 2 more years=22000×
100
12
×2=₹5280
Total amount to clear the loan after 2 more years:
Total
=
22000
+
5280
=
₹
27280
Total=22000+5280=₹27280
Thus, he will have to pay ₹27,280 to clear the loan.