Tanu decides to live with her relatives for 6 months so there is
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: Tanu decides to live with her relatives for 6 months so there is no rent and no expenses of her, so she decided to lent that money to Garima at 10% rate of compound interest compounded annually, then how much amount will she receive from Garima after 2 years?
A. Rs. 63,425
B. Rs. 56,408
C. Rs. 64,614
D. Rs. 65,703
E. Cannot be determined
Right Answer is: C
SOLUTION
Amount paid for rent = Rs. 5500/month
Amount spent on other expenses = Rs. 3400/month
Total amount she would save in 6 months = 6 × (5500 + 3400) = 6 × 8900 = Rs. 53400
Amount = P{1 + (r/100)n}
∴ Amount received from Garima after 2 years = 53400{1 + 10/100}2 = (53400 × 121)/100 = Rs. 64,614
