Ravi borrowed Rs 15,000 at the rate of 15% per annum for 2 years under simple interest. As he could not repay the loan after two years, the money lander lender increased the rate of interest to 20% per annum for the further period. If Ravi wants to repay the entire amount at the end of a total period of 3 years and 4 months, then how much he has to pay. (in Rs.)

Ravi borrowed Rs 15,000 at the rate of 15% per annum for 2 years under

1.	Ravi borrowed Rs 15,000 at the rate of 15% per annum for 2 years under simple interest. As he could not repay the loan after two years, the money lander lender increased the rate of interest to 20% per annum for the further period. If Ravi wants to repay the entire amount at the end of a total period of 3 years and 4 months, then how much he has to pay. (in Rs.)
Answer» 24500 24000 23500 23000 Solution :Case 1: For the FIRST two years `P=15,000, R=15%, T=2` `I = (15,000 xx 15 xx 2)/(100) = RS 4500` Case 2: For the REMAINING time period `P=15,000, R=20%, T=16` months `I = (15,000 xx 20 xx 16/12)/(100)` `RARR I=(15,000 xx 20 xx 16)/(1200) = Rs 4000`. `therefore` Total amount that Ravi has to pay =15,000 + 4500 + 400 = Rs 23,500