Pranav borrows a sum of ₹598397 at the rate of 20% per annum, simple interest. At the end of the first year, he repays ₹24284 towards the return of the principal amount borrowed. If Pranav 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: B
Explanation
The correct answer is option 2 i.e. 808615.
Simple interest for first year = = = ₹119679.4
Remaining Principal = 598397 - 24284 = ₹574113
Simple interest for the second year = = ₹114822.6
Total Amount = 574113 + 119679.4 + 114822.6 = ₹808615
Therefore, Pranav pays ₹808615 at the end of the second year.