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SBI lent 1 lakh to farmer Kishan Singh at 6% per annum, at simple interest for a period of 10 years. Meanwhile, the bank offered a discount in the rate of interest, according to the Govt. policy for farmers. Thus, the rate of interest is decreased to 4% p.a. In this way, Kishan Singh had to pay a total amount 1.48 lakh. After how many years did Kishan Singh got the discount in the rate of interest?
  • a)
    2 years
  • b)
    3 years
  • c)
    4 years
  • d)
    5 years
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
SBI lent 1 lakh to farmer Kishan Singh at 6% per annum, at simple int...
Suppose that 6% per annum be the rate of interest for x years, then the 4% per annum be the rate of interest for (10 - x) years.
Interest paid by Kishan Singh = Rs. 48,000
Now,
48 = 6x + 40 - 4x
2x = 8
x = 4 years
It means Kishan Singh availed the discount after 4 years.
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Community Answer
SBI lent 1 lakh to farmer Kishan Singh at 6% per annum, at simple int...
Given:
- Principal amount (P) = Rs. 1 lakh
- Rate of interest (R1) = 6% per annum
- Rate of interest after discount (R2) = 4% per annum
- Total amount to be paid (A) = Rs. 1.48 lakh

To find:
- After how many years did Kishan Singh get the discount in the rate of interest?

Solution:
Let's assume that Kishan Singh got the discount in the rate of interest after 'n' years.

Calculation using Simple Interest formula:
The Simple Interest (SI) formula is given by:
SI = (P * R * T) / 100

For the first 'n' years, the SI will be calculated at the original rate of interest (R1):
SI1 = (P * R1 * n) / 100

For the remaining (10 - n) years, the SI will be calculated at the discounted rate of interest (R2):
SI2 = (P * R2 * (10 - n)) / 100

The total amount to be paid is the sum of the principal and the simple interest:
A = P + SI1 + SI2

Substituting the values given in the question:
1.48 lakh = 1 lakh + (1 lakh * 6 * n) / 100 + (1 lakh * 4 * (10 - n)) / 100

Simplifying the equation:
0.48 lakh = (6n + 4(10 - n)) * 1000

0.48 lakh = (6n + 40 - 4n) * 1000

0.48 lakh = 2000n + 40000 - 4000n

0.48 lakh = -2000n + 40000

2000n = 40000 - 0.48 lakh

2000n = 40000 - 48000

2000n = -8000

n = -8000 / 2000

n = -4

Since time cannot be negative, we discard the negative value of 'n'. Therefore, Kishan Singh got the discount in the rate of interest after 4 years (Option C).
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SBI lent 1 lakh to farmer Kishan Singh at 6% per annum, at simple interest for a period of 10 years. Meanwhile, the bank offered a discount in the rate of interest, according to the Govt. policy for farmers. Thus, the rate of interest is decreased to 4% p.a. In this way, Kishan Singh had to pay a total amount 1.48 lakh. After how many years did Kishan Singh got the discount in the rate of interest?a)2 yearsb)3 yearsc)4 yearsd)5 yearsCorrect answer is option 'C'. Can you explain this answer?
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SBI lent 1 lakh to farmer Kishan Singh at 6% per annum, at simple interest for a period of 10 years. Meanwhile, the bank offered a discount in the rate of interest, according to the Govt. policy for farmers. Thus, the rate of interest is decreased to 4% p.a. In this way, Kishan Singh had to pay a total amount 1.48 lakh. After how many years did Kishan Singh got the discount in the rate of interest?a)2 yearsb)3 yearsc)4 yearsd)5 yearsCorrect answer is option 'C'. Can you explain this answer? for Electrical Engineering (EE) 2024 is part of Electrical Engineering (EE) preparation. The Question and answers have been prepared according to the Electrical Engineering (EE) exam syllabus. Information about SBI lent 1 lakh to farmer Kishan Singh at 6% per annum, at simple interest for a period of 10 years. Meanwhile, the bank offered a discount in the rate of interest, according to the Govt. policy for farmers. Thus, the rate of interest is decreased to 4% p.a. In this way, Kishan Singh had to pay a total amount 1.48 lakh. After how many years did Kishan Singh got the discount in the rate of interest?a)2 yearsb)3 yearsc)4 yearsd)5 yearsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Electrical Engineering (EE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for SBI lent 1 lakh to farmer Kishan Singh at 6% per annum, at simple interest for a period of 10 years. Meanwhile, the bank offered a discount in the rate of interest, according to the Govt. policy for farmers. Thus, the rate of interest is decreased to 4% p.a. In this way, Kishan Singh had to pay a total amount 1.48 lakh. After how many years did Kishan Singh got the discount in the rate of interest?a)2 yearsb)3 yearsc)4 yearsd)5 yearsCorrect answer is option 'C'. Can you explain this answer?.
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