Pranav borrows a sum of ₹598397 at the rate of 20% per annum simple interest. At the end of the first year, he repays ₹24284 towards return of principal amount borrowed. If Pranav clears all pending dues at the end of the second year, including interest payment that accrued during the first year, how much does he pay (in ₹) at the end of the second year? 

Correct option is B

Given:
Principal amount borrowed: ₹598397

Rate of interest: 20% per annum simple interest

Repayment at the end of the first year: ₹24284

Formula Used:
Simple interest for one year is calculated using the formula:

​$$I = P \times \frac{R}{100} \times T$$​​

where ( P ) is the principal, ( R ) is the rate of interest, and ( T ) is the time in years.

Solution:

The interest for the first year:

​$$I_1 = 598397 \times \frac{20}{100} \times 1 = 119679.4$$​​

So, the interest accrued in the first year is ₹119679.4.

After the repayment of ₹24284 at the end of the first year, the remaining principal is:

​$$\text{Remaining Principal} = 598397 - 24284 = 574113$$​​

The interest for the second year on the remaining principal:

​$$I_2 = 574113 \times \frac{20}{100} \times 1 = 114822.6$$​​

The total amount Pranav has to pay at the end of the second year includes:

Remaining principal: ₹574113

Interest for the first year: ₹119679.4

Interest for the second year: ₹114822.6

Total Amount = 574113 + 119679.4 + 114822.6 = 808615

Therefore, Pranav has to pay ₹808615 at the end of the second year.