Question

Satyam took a loan from IDIDI Bank for his 2 years course of MBA at IMD. He took the loan of Rs. 6 lakh such that he would be charged at 8% per annum at CI during his course and at 10% CI after the completion of course. He returned half of the amount which he had to pay on the completion of his studies and remaining after 2 years. What is the total amount returned by Satyam?

• A. Rs. 7.73323 lakh
• B. Rs. 7.58 lakh
• C. Rs. 7.336 lakh
• D. none of these

Answer 1

The correct option is A Rs. 7.73323 lakh

Amount which is to be returned on completion of studies
= 600000 $\times (1.08{)}^2$
= 699840
But only half of 699840 is returned which is equal to Rs. 349920
$\therefore$ Amount which is returned after two year of completion of studies
$=349920{(1+\frac{10}{100})}^2$
= 423403.2
Total amount returned
= 349920 + 423403.2 = 773323.3
=Rs. 7.73323 lakh