CUET · MATHS · PYQ PAPER 2023
Mr. Ram took a loan of 4,00,000rupees at 10% annual interest rate and paid 20,000 as monthly instalment under flat rate system. What is the term of the loan?
- A 5 years
- B 4 years
- C 3 years
- D 2 years
Answer & Solution
Correct Answer
(D) 2 years
Step-by-step Solution
Detailed explanation
Total Interest \( = P \times R \times T \) Total Payment \( = P + (P \times R \times T) \) \( \text{Monthly Instalment} \times 12 \times T = P + (P \times R \times T) \) \( 20,000 \times 12 \times T = 4,00,000 + (4,00,000 \times 0.10 \times T) \)…
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