Answer:
The interest will the borrower pay on is Rs. 1,026 ⇒ answer b
Step-by-step explanation:
* Lets explain how to solve the problem
- A borrower pays 18% interest per year on the first Rs. 600 he borrows
- He pays 17% per year on the loan on the part of the loan in excess
of Rs. 600
- We need to find the interest he will pay on the loan of 6000 for a year
∵ The lone is Rs. 6000 for 1 year
∵ He pays 18% interest for the first Rs. 600
∵ I = Prt , where I is the interest , P is the loan amount , r is the rate
of interest in decimal t is the time
∵ P = 600
∵ r = 18/100 = 0.18
∵ t = 1
∴ I = 600 × 0.18 × 1 = 108
* <em>The interest for the first Rs. 600 is Rs. 108</em>
- The loan is Rs. 6000 , we calculated the interest for the first
Rs. 600, then we want to calculate the interest for the rest of
the loan at rate 17% per year
∵ The rest of the loan = 6000 - 600 = 5400
∵ P = 5400
∵ r = 17/100 = 0.17
∵ t = 1
∴ I = 5400 × 0.17 × 1 = 918
* <em>The interest for the rest of the loan is Rs. 918</em>
- The total interest is the sum of the two interest above
∵ The interest of Rs. 600 is Rs. 108
∵ The interest of the rest of the loan is Rs. 918
∴ The total interest = 918 + 108 = 1026
* <em>The interest will the borrower pay on is Rs. 1,026</em>
