Aman borrows a sum of ₹192208 at the rate of 15% per annum simple interest. At the end of the first year, he repays ₹20196 towards return of principal amount borrowed. If Aman clears all pending dues at the end of the second year, including interest payment that accrued during the first year, how much does he pay (in ₹) at the end of the second year?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 226645.
Simple Interest for the first year= (P × R × T)/100
Simple interest = (192208 × 15 × 1)/100 = ₹28831.20
At the end of the first year, remaining principal = 192208 − 20196 = ₹172012
Simple interest for the second year on the remaining principal = (172012 × 15 × 1)/100 = ₹25801.80
Total payment at the end of the second year =172012 + 28831.20 + 25801.80 = ₹226645