₹40,000 is borrowed at a flat rate of 7.5% a year for 2 years. How much is repaid in all?

Explanation

1. 01

   Interest $= 40{,}000 \times 0.075 \times 2 = 6{,}000$.

2. 02

   Repaid in all: $40{,}000 + 6{,}000 = 46{,}000$ rupees.