Question

Mohan borrows Rs. 50,000 from a bank at 10% per annum. He repays Rs. 25,000 at the end of each year, What amount does he owe to the bank after the second repayment?

• A. Rs. 10,000
• B. Rs. 8,000
• C. Rs. 12,000
• D. None of these.

Answer 1

Answer: (B)

Rs. 8,000

For $1^{st}$ year

$P=50000$

$R=10$%

$T=1$

$\therefore S.I=\frac{PTR}{100}=\frac{50000\times 10\times 1}{100}=Rs.5000$

$\therefore A=P+S.I$

$=55000$

Now, $25000$ is repaid

$\therefore$ ${}^{\prime }{P}^{\prime }$ for second year $=55000-25000$

$=30000$

$T=1$

$R=10$

$\therefore S.I=\frac{30000\times 1\times 10}{100}=Rs.33000$

$\therefore$ Money outstanding $=(33000-25000)$ $=Rs.8,000$

$\therefore$ $=8000$