Question

What is the amount to be repaid after 5 years on a loan of ₹25,000 at 5% interest?

• A. ₹31,250
• B. ₹32,250
• C. ₹31,000
• D. ₹32,000

Answer 1

The correct option is A ₹31,250

Interest on ₹25,000 at 5% for 5 years will be
S.I = $\frac{PTR}{100}$
$\frac{25000\times 5\times 5}{100}$
= $250\times 5\times 5$ = 6250
$\therefore$ S.I = ₹6250
Hence, amount to be repaid after 5 years
A = P +S.I = 25000 + 6250 = ₹31,250