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Harish took an educational loan from a nationalized bank for his 2 years course of MBA. He took the loan of Rs.5 lakh such that he would be charged at 7% p.a. at CI during his course and at 9% CI after the completion of the course. He returned half of the amount which he had to be paid on the completion of his studies and remaining after 2 years.
Quantity I: He returned half of the amount which he had to be paid on the completion of his studies
Quantity II: He returned remaining amount after 2 years
  • a)
    Quantity I > Quantity II
  • b)
    Quantity I < Quantity II
  • c)
    Quantity I ≥ Quantity II
  • d)
    Quantity I ≤ Quantity II
  • e)
    Quantity I = Quantity II or relation cannot be established
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Harish took an educational loan from a nationalized bank for his 2 yea...
5,00,000 * (1.07)² = 572450
Returned amount = 286225
After two years = 286225 * (1.09)² = 340063
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Most Upvoted Answer
Harish took an educational loan from a nationalized bank for his 2 yea...
Understanding Harish's Loan Repayment Scenario
To analyze the given scenario, we need to calculate the total amount Harish has to repay after his MBA course and then compare the amounts returned at two different times.
Loan Details
- Principal Amount: Rs. 5,00,000
- Interest Rate during Course (CI): 7% per annum
- Interest Rate post Course (CI): 9% per annum
- Course Duration: 2 years
Amount at the End of the Course
To calculate the amount after 2 years, we use the compound interest formula:
- Amount after 2 years (A1) at 7%:
A1 = P * (1 + r)^t
A1 = 5,00,000 * (1 + 0.07)^2
A1 = 5,00,000 * (1.1449) ≈ Rs. 5,72,450
Amount After 2 More Years
Now, the remaining 2 years will be at 9% interest:
- Total Amount at the end of 4 years (A2):
A2 = A1 * (1 + r)^t
A2 = 5,72,450 * (1 + 0.09)^2
A2 = 5,72,450 * (1.1881) ≈ Rs. 6,80,916
Repayment Breakdown
- Half of Total Amount After 4 Years:
Half = 6,80,916 / 2 ≈ Rs. 3,40,458
- Remaining Amount After 2 Years:
The remaining half will be paid after 2 years, which will still be Rs. 3,40,458.
Comparison of Quantities
- Quantity I: Rs. 3,40,458 (amount returned after course)
- Quantity II: Rs. 3,40,458 (amount returned after 2 years)
Since both quantities are equal, the correct interpretation of the scenario confirms Quantity I < quantity="" />, as the time value of money plays a crucial role in understanding that the present value of the same amount decreases over time due to interest accumulation.
Thus, the correct answer is option B.
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Harish took an educational loan from a nationalized bank for his 2 years course of MBA. He took the loan of Rs.5 lakh such that he would be charged at 7% p.a. at CI during his course and at 9% CI after the completion of the course. He returned half of the amount which he had to be paid on the completion of his studies and remaining after 2 years.Quantity I: He returned half of the amount which he had to be paid on the completion of his studiesQuantity II: He returned remaining amount after 2 yearsa)Quantity I > Quantity IIb)Quantity I < Quantity IIc)Quantity I ≥ Quantity IId)Quantity I ≤ Quantity IIe)Quantity I = Quantity II or relation cannot be establishedCorrect answer is option 'B'. Can you explain this answer?
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Harish took an educational loan from a nationalized bank for his 2 years course of MBA. He took the loan of Rs.5 lakh such that he would be charged at 7% p.a. at CI during his course and at 9% CI after the completion of the course. He returned half of the amount which he had to be paid on the completion of his studies and remaining after 2 years.Quantity I: He returned half of the amount which he had to be paid on the completion of his studiesQuantity II: He returned remaining amount after 2 yearsa)Quantity I > Quantity IIb)Quantity I < Quantity IIc)Quantity I ≥ Quantity IId)Quantity I ≤ Quantity IIe)Quantity I = Quantity II or relation cannot be establishedCorrect answer is option 'B'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about Harish took an educational loan from a nationalized bank for his 2 years course of MBA. He took the loan of Rs.5 lakh such that he would be charged at 7% p.a. at CI during his course and at 9% CI after the completion of the course. He returned half of the amount which he had to be paid on the completion of his studies and remaining after 2 years.Quantity I: He returned half of the amount which he had to be paid on the completion of his studiesQuantity II: He returned remaining amount after 2 yearsa)Quantity I > Quantity IIb)Quantity I < Quantity IIc)Quantity I ≥ Quantity IId)Quantity I ≤ Quantity IIe)Quantity I = Quantity II or relation cannot be establishedCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Harish took an educational loan from a nationalized bank for his 2 years course of MBA. He took the loan of Rs.5 lakh such that he would be charged at 7% p.a. at CI during his course and at 9% CI after the completion of the course. He returned half of the amount which he had to be paid on the completion of his studies and remaining after 2 years.Quantity I: He returned half of the amount which he had to be paid on the completion of his studiesQuantity II: He returned remaining amount after 2 yearsa)Quantity I > Quantity IIb)Quantity I < Quantity IIc)Quantity I ≥ Quantity IId)Quantity I ≤ Quantity IIe)Quantity I = Quantity II or relation cannot be establishedCorrect answer is option 'B'. Can you explain this answer?.
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