Question

A person takes a loan of Rs. 200 at 5% simple interest. He returns Rs. 100 at the end of 1 year. In order to clear his dues at the end of two years, he would pay

• A. Rs. 105
• B. Rs. 110
• C. Rs. 115
• D. Rs.115.50

Answer 1

The correct option is D Rs.115.50

Amount to be paid after first year $=\frac{200\times 5\times 1}{100}+200=210$
Amount left as principal for the second year $=210-100=110$
$\therefore$ Amount paid in second year = $110+\frac{110\times 5\times 1}{100}=115.5$