A landless worker in a village takes a loan of two bags of rice from the village landlord. The condition is that she will repay the loan in two and half bags of rice at the end of one year. The interest paid equals _____.

The difference between the money value of rice between now and at the end of the year.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

31.25 percent of the original amount of loan.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

25 percent of the original amount of loan.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

The difference between the rates of interest charged by banks between now and at the end of the year.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C 25 percent of the original amount of loan.
If a landless worker takes a loan of two bags of rice from the village landlord and repay the loan in two and half bags of rice at the end of one year. Then, the interest paid is equal to the 25% of the original amount of loan. Zamindars and moneylenders exploit illiterate workers by charging higher rate of interests.

Suggest Corrections

Similar questions

The given question consists of a set of statements. Find out whether the data provided in the statements are sufficient to answer the question and mark the option:

Saurabh took a loan from bank at a certain compound rate of interest ‘x%’ per annum. Ravi also took a loan although from a different bank at a compound rate of interest ‘y%’ per annum. Who will repay the loan at a greater rate of interest?
I. Saurabh repays the loan with his amount paid being more than that paid by Ravi at the end of the loan periods.
II. Time period for both the loans is 5 years.

Q. Sita took a loan of ₹100 from the bank and repayed ₹140 after an year. What is the amount of interest she paid for the loan?

Kishan's father took a loan from the bank at 12.5% interest p.a. for 4 years.

Calculate the total amount that he paid at the end of 4 years if the loan taken was 10000 times the interest rate.

Q. Mr. Sharma takes loan of Rs.

25000

and repays an amount of Rs.

31000

at the end of

2

years. What is the rate of simple interest at which he repays the loan?

Q. A man borrows Rs. 8,000 at 10 percent Compound interest. If he repays Rs. 1,500 at the end of first year and Rs. 3,200 at the end of second year, find the amount of loan outstanding at the beginning of the third year.

Join BYJU'S Learning Program