NIFT UG 2017 Question Paper with solutions

Question : 73 of 150

Marks: +1, -0

Piyush takes a loan of ₹10,000. After 1 year, he takes another loan of ₹10,000 at double the rate of interest. If he has to pay interest at simple rate of interest & settles the loan by paying ₹23,600 at the end of two years, what is the initial rate of interest he has to pay?

Validate

Solution:

\;\;{10000×r×2}/{100}+\;\;{10000×2r×1}/{100}

=200r+200r=400r

Total amount

=20000+400r

According to the question,

20000+400r=23600

⇒400r=3600

⇒r=9

Hence, initial rate of interest = 9%.

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