Question

Ramayya took a loan of ₹60,000 from a bank at a rate of 8% per annum. What interest he has to pay at the end of second year?

• A. ₹9,000
• B. ₹9,600
• C. ₹9,800
• D. ₹10,000

Answer 1

The correct option is B ₹9,600

Here,
P = ₹60,000
R = 8%
T = 2 years

S.I = $\frac{P\times R\times T}{100}$

$\Rightarrow$ S.I = $\frac{60,000\times 8\times 2}{100}$

$\Rightarrow$ S.I = $600\times 8\times 2$ = ₹9,600

So, Ramayya has to pay an interest of ₹9,600 at the end of second year.