Ravi took a Loan of 4Lakh rupees from a Bank on a condition that he wi...
Calculating the total amount paid by Ravi to the bank:
Initial Loan Amount:
- Loan amount = 4,00,000 rupees
Interest Calculation for the first 2 years:
- Principal amount after 2 years = 4,00,000 * (1 + 5/100)^2 = 4,00,000 * 1.1025 = 4,41,000 rupees
- Interest paid for the first 2 years = 4,41,000 - 4,00,000 = 41,000 rupees
Amount returned after 2 years:
- Amount returned = 2/3 * 4,00,000 = 2,66,667 rupees
- Remaining amount after 2 years = 4,41,000 - 2,66,667 = 1,74,333 rupees
Interest Calculation for the next 2 years:
- Principal amount after another 2 years = 1,74,333 * (1 + 10/100)^2 = 1,74,333 * 1.21 = 2,10,799.93 rupees
- Interest paid for the next 2 years = 2,10,799.93 - 1,74,333 = 36,466.93 rupees
Total amount paid by Ravi to the bank:
- Total amount = 4,00,000 + 41,000 + 36,466.93 = 4,77,466.93 rupees
Therefore, the total amount paid by Ravi to the bank is 4,77,466.93 rupees, which is closest to option 'D' 6,18,870 rupees.