Question

What is the interest paid in the $80\%$ Finance scheme?

• A. Rs. $\mathrm{40,000}$
• B. Rs. $\mathrm{80,000}$
• C. Rs. $\mathrm{64,000}$
• D. Rs. $\mathrm{32,000}$

Answer 1

The correct option is C Rs. $\mathrm{64,000}$

$\Rightarrow$ Initial payment = 20% of Rs.4,00,000.

$\Rightarrow$ Initial payment = $\frac{20}{100}\times 4,00,000=Rs.80,000$

$\Rightarrow$ Loan amount = Selling price - Initial payment

$\Rightarrow$ Loan amount = $Rs.4,00,000-Rs.80,000=Rs.3,20,000$

$\Rightarrow$ $Interest=\frac{320000\times 10\times 2}{100}=Rs.64,000$

$\therefore$ Interest paid in $80\%$ Finance scheme is $Rs.64,000$.