Ramesh borrowed Rs. 1,20,000 interest free from Aman. If he pays back at 6.25% of this amount quarterly and has already paid Rs. 30,000, then for how many months does he need to pay back his loan for the rest of the amount?

A. 36 months

B. 24 months

C. 42 months

D. 38 months

Answer: Option A

Solution (By Examveda Team)

Borrowed amount = 120000
First return amount = 30000
Remaining amount = 90000
Return in 3 month = 120000 × 6.25%
= 120000 × $$\frac{1}{{16}}$$
= 12 × 25 × 25