Aptitude - Simple Interest - Discussion

Ans should be 115.5.

Explanation:
We will individually find the amount which has to be paid by man and to find out the amount we will use the simple formula;
Simple interest = Principal amount × rate × year100.


Complete step by step answer:
First, we will calculate the amount that has to be paid after 1st year,
So, according to the question statement.
After 1st year his total outstanding amount would be 200+5%interest over Rs 200.

Outstanding amount = 200 + 200 × 5 × 1100{∵ Amount = P×R×T100}
= 200 + 10,
= Rs 210.

After 1st year his total outstanding amount would be Rs 210 but the man repays Rs 100.

The outstanding amount is Rs 110.
So, after 2nd year his total outstanding amount would be 110 + 5% interest over Rs110.
zoutstanding amount = 110 + 110 × 5 × 1100{∵A=P×R×T100}.
= 110 + 5.5,
= Rs 115.50.

Dear All I am not getting what you are justifying let's have a solution from my end

the person takes loan of Rs. 200 at 5% PA

He returns Rs. 100 at the end of 1 year

Bank will charged interest on Rs 200 for one Year

taht is (200*5*1)/100 comes Rs 10 as interest

But he returned Rs. 100 at the end of the first year hence the total is (90+10=100).

hence still he has taken Rs 110.

Now he clears all his dews at the end of the 2nd year now again Bank will charg interest over Rs 110 for 1 year

Hence interest will be (110*5*1)/100 and taht comes Rs 5.5

hence total amount he has to pay at the end of the 2nd year is (110+5.5 = 115.5)

hence the option D is correct and this given in answer is wrong

Ans is 115 when it is SI and 115.5 when it is CI

p=200 initially

r=5%

So si for first year =200*1*5/100=10 rs

He returns rs 100 ie 200-100=100

So for the first year after paying 100 rs balance will be 100 rs principle and 10 rs interest .as it is si next year interest will be calculated for rs 100 which is
The balance in his loan
2nd year si=100*1*5/100=5 rs

So at the end of 2nd year to close the loan he has to pay rs 100(principle balance) +rs 10(interest 1st yr) +rs 5(interest 2nd year)=115 rs

If it was CI answer will be 115.5 as 2nd years p will be 100+10
hope the confusion is over now :)

If simple interest is calculated just on the initial sum then why do we need to calculate it again on the remaining amount, whatever that may be?

Totai interest for two years on the sum = 200*5*2/100 = 20 Rs.
Therefore, sum + SI =200 +20 = 220.

Rs. 220 is the total amount to be paid.
If in the first year Rs. 100 is paid, then in the second year, he should pay 220-100= 120 Rs.
The options given should include 120 Rs.

All other answers are confusing as the SI given by them (first and second year added) is less than that given by formula p*n*r/100 = 200 * 5 * 2/100 = 20 Rs. for two years.

115 is the right answer. The first thing this question is based on simple interest, so for the second year, interest money will not be added with the rest of the principal money. after one-year total interest will be:

(200 x 5 x 1)/100 = 10 -> first-year interest = 10 Rs -- this money will not add up with principal for next year.

And he paid 100 Rs in the last one year so the rest of the money is 200-100 = 100.
Now we will calculate interest for 100 Rs for 2nd year -- ( 100 x 5 x 1 )/100 = 5 Rs.

So total money after 2nd year he has to pay = ( 100 + 10 + 5 ) = 115.

A person takes a loan of Rs. 200 at 5% simple interest. He returns Rs. 100 at the end of 1 year. In order to clear his dues at the end of 2 years, he would pay: (Ans Rs. 115)

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Answer is wrong, else the method is wrong , coz at the end of 1 year he pays 100/- , bcoz the amount at the end of 1 year must be 210/- n 210-100=110/- which is the principal for the next year.
First year SI = 10, amount = P+SI=200+10=210,
He pays 100/- at the end , so amount = 210-100=110,
110 is the new P for next year,

Hey guys,

The answer is correct, because in simple interest the calculation is always done on the main amount not on the addition of interest and main.

After first year amount=210, where 10 is intrest.
since 100 is already paid so rest amount is 200+10-100=100+10.

Since 10 is the interest of first year so we cannot include that amount for calculating the rest money of 2nd year.

Now SI for next year = 100*5*1/100=5

Hence the total amount = main amount + SI of 1st year + SI of 2nd year
= 100+10+5 = 115.

The Answer is correct.

First, he takes 200$ loan from the bank.

So, for first 1 year duration the interest value is = (200*1*5/100) = 10$.
Then, he gives back $100 so net amount he has on which simple interest will apply is 100 because of simple interest take account only initially invested money.

So, for 2nd-year interest =(100*1*5/100)=5$.
So the total amount he gives back after the end of 2nd year = 100+10+5=115 (Principal amount remaining after 1st year + 1st-year interest+2nd-year interest).

Correct answer is 115.

As per calculation and definition of simple interest.
The total amount borrowed 200. For 2 year period.

If we calculate interest per period we get our answer.

S = p(1 + rt).
S = 200(1 + .05*1).
S = 210.

Less amount returned.
210 - 100 = 110.

For the second period of time, we take 100 as principal, not 110.

S = p(1 + rt).
S = 100(1 + .05*1).
S = 105.

Add the previous interest which is 10 Rs.
Total payable,

105 + 10 = 115.

115 is correct answer bcoz he had taken 200 for 2 years at 5%

S.I for which become 10 rupees

Total =210 at the end of 1st year
so 210-100=10 rupees

Now P become 100 for next year(S.I) coz he had return 100 rupees already

S.I for 100 in one year at 5% is 5

So TOTAL momey to be paid by him would be

210+105=315 out of which he had return 100

So it becomes 215 , means which contains 100 rupees for sum and 115 rupees are to be paid.