Question

Mahesh and Charan have to clear their respective loans of Rs. 30030 each by paying in 2 equal annual installments. Mahesh pays at the rate of 20% per annum simple interest while Charan pays at the rate of 20% per annum compound interest. What is the sum of the amounts paid by both?

• A. Rs. 75620
• B. Rs. 78120
• C. Rs. 79480
• D. Rs. 82120

Answer 1

The correct option is B Rs. 78120

Let each installment of Mahesh be X, then

$30030=\frac{X}{\frac{120}{100}}+\frac{X}{\frac{140}{100}}$

$\Rightarrow 30030=\frac{5X}{+}+\frac{5X}{7}$

⇒ X = 19404
So, the payment of Mahesh = 2X = Rs. 38808.
Let each installment of Charan be Y, then

$30030=\frac{Y}{\frac{120}{100}}+\frac{X}{{\left(\frac{120}{100}\right)}^2}$

$\Rightarrow 30030=\frac{5Y}{6}+\frac{25Y}{36}$

⇒ Y = 19656

So, the payment of Mahesh = 2Y = Rs. 39312.

Hence, the required sum = 38808 + 39312 = Rs. 78120.