How much loan does bank have to grant for her complete two years
Direction: Study the given information carefully and answer the following questions accordingly.
Tanu took a loan from a bank to pursue her M.Arch degree from a reputed college in New Delhi. The bank agreed to pay 80% of all her expenses. M.Arch course was a two year course, having four semesters each of 6 months. Tuition fee for each semester was Rs. 2,50,000. She took hostel to stay, her hostel charges were Rs. 5500/per month and extra expenses per month were Rs. 3400.
Based on the given information, answer the following questions.Question 1: How much loan does bank have to grant for her complete two years course on behalf of Tanu?
A. Rs. 903080
B. Rs. 854280
C. Rs. 970880
D. Rs. 902880
E. Cannot be determined
Right Answer is: C
SOLUTION
Total expenditure on rent = 24 months × Rs. 5500 = Rs. 1,32,000
Total expenditure on other expenses = 24 months × Rs. 3400 = Rs. 81,600
Total expenditure on tuition fees = 4 semesters × Rs. 25000 = Rs. 10,00,000
Thus total expenditure = 132000 + 81600 + 1000000 = Rs. 12,13,600
The bank paid 80% of this amount.
∴ Amount of loan granted by the bank = 80/100 × 1213600 = Rs. 970880
