Indian Institute of Foreign Trade 2017 Solved Paper

Question : 57 of 114

Marks: +1, -0

Swam a SME enterprise borrowed a sum of money from a nationalized bank at 10% simple interest per annum and the same amount at 8% simple interest per annum from a microfinance firm for the same period. It cleared the first loan 6 months before the scheduled date of repayment and repaid the second loan just at the end of the scheduled period. If in each case it had to pay Rs. 62100 as amount then how much money and for what time period did it borrow?

Rs. 55750, 2 years
Rs. 52500, 2 years
Rs. 51750, 2.5 years
Rs. 55750, 2.5 years

Validate

Solution:

Choice (C) Suppose the loan taken is p and it is taken for t years, then total amount paid for the loans will be

p + { p × 10 × ( t - 1 / 2 ) }/ { 100 }

and

p + { p × 8× t }/ { 100 }

Since both these amounts are same, hence

t = 5/2.

Also

p + { p ×8 × t } /{ 100 } = 62100 ⇒p = 51750

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