Question

Mr. Sharma bought a washing machine for Rs $4000$ on credit. The rate of interest for the first year is $5$% and for the second year is $15$%. How much will it cost him if he pays the amount after two years?

• A. Rs $4500$
• B. Rs $4830$
• C. Rs $5260$
• D. Rs $6400$

Answer 1

The correct option is B Rs $4830$

Cost of washing machine = Rs. $4000$

Interest for $1$st year = $\frac{5}{100}\times 4000=Rs.200$

Therefore, amount after $1$ year = Rs. $4200$

Interest after $2$nd year = $\frac{15}{100}\times 4200=Rs.630$

Hence, cost after $2$ years = $Rs,4000+Rs.830=Rs.4830$