Question

A person takes a loan of Rs.500 at 5%. He returns a Rs.100 at the end of 1 year. In order to clear his due at the end of 2 years, he would pay

• A. Rs.470
• B. Rs.460
• C. Rs.480
• D. Rs.500
• E. None of these

Answer 1

The correct option is C

Rs.480

Amount to be paid

= $[400+\frac{400\times 5\times 2}{100}+\frac{500\times 5\times 1}{100}]$ = $Rs.465$