Naman borrows a sum of ₹3,48,020 at the rate of 8% per annum simple interest. At the end of the first year, he repays
₹15,090 towards return of principal amount borrowed. If Naman 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?

Question

Accepted Answer

Step 1: Calculate interest for the first year on the full principal.  
Interest = Principal × Rate × Time = 3,48,020 × 8% × 1 = 3,48,020 × 0.08 = ₹27,841.6

Step 2: At the end of the first year, Naman repays ₹15,090 towards principal. So, the remaining principal after first year = 3,48,020 - 15,090 = ₹3,32,930

Step 3: Interest accrued during the first year (₹27,841.6) is still pending and will be paid at the end of the second year.

Step 4: Calculate interest for the second year on the remaining principal.  
Interest for second year = 3,32,930 × 8% × 1 = 3,32,930 × 0.08 = ₹26,634.4

Step 5: At the end of the second year, Naman pays:
- Remaining principal: ₹3,32,930
- Interest for first year: ₹27,841.6
- Interest for second year: ₹26,634.4

Total payment at end of second year = 3,32,930 + 27,841.6 + 26,634.4 = ₹3,87,406

Therefore, the correct amount paid at the end of the second year is ₹3,87,406.

Answer

Answer

Answer