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Ravi took a loan from HDBC Bank for his 2-year MBA program at IIM. He took the loan of ₹ 6 lakh such that he would be charged at 8% per annum compound interest during his program and at 10% per annum compound interest after completion of course. He returned half of the amount which he had to pay on the completion of his program and remaining after 2 years. What is the total amount returned by Ravi?
After the 2-year course gets completed, ₹ 6 lakh loan will amount to: ₹ $$6\left(1+\dfrac{8}{100}\right)^2$$
Now, he has repayed half of the amount.
So, amount outstanding after completion of course = $$\dfrac{6}{2}\left(1+\dfrac{8}{100}\right)^2=3\left(1.08\right)^2=3.4992$$ lakh
Now after another 2 years, when rate of interest will be 10% p.a., the amount will become = $$3.4992\left(1+\dfrac{10}{100}\right)^2=3.4992\times\ 1.1^2=4.234032$$ lakh
So, amount returned by Ravi = ₹ $$(3.4992+4.234032)=7.733232$$ lakh.
So, option A is the correct answer.
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