Question 108

₹ 2,40,000 is taken as loan for three years compounded annually at 12.5% p.a. At the end of first year. the interest is revised to 12% p.a. The total amount to be repaid at the end of third year is:

Solution

At the end of first year amount becomes

$$=240000×1.125=270000.$$

interest rate cut down to 12% from second year.

So, at the end of third year the amount will become$$=270000×1.12×1.12.$$

$$=338688.$$

C is correct choice.

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