Let's solve this problem step by step.

1. First, calculate the interest accrued during the 1st year.

The interest is calculated on the initial principal amount of Rs 335,180 at a rate of 13% per annum.

$\text{Interest for 1st year} = \frac{P \times R \times T}{100}$

Where:

• $P = 335,180$ (Principal amount),
• $R = 13\%$ (Rate of interest),
• $T = 1$ year.

$\text{Interest for 1st year} = \frac{335,180 \times 13 \times 1}{100} = 43,573.4$

So, Rs 43,573.4 is the interest accrued during the 1st year.

2. Pranav repays Rs 23,060 towards the principal at the end of the 1st year.

The remaining principal after this repayment is:

$\text{Remaining principal} = 335,180 - 23,060 = 312,120$

3. Calculate the interest for the 2nd year on the reduced principal.

For the 2nd year, the interest is calculated on Rs 312,120 at the same rate of 13% per annum.

$\text{Interest for 2nd year} = \frac{312,120 \times 13 \times 1}{100} = 40,575.6$

4. Calculate the total amount to be paid at the end of the 2nd year.

At the end of the 2nd year, Pranav needs to pay:

• The remaining principal (Rs 312,120),
• The interest for the 1st year (Rs 43,573.4),
• The interest for the 2nd year (Rs 40,575.6).

$\text{Total payment} = 312,120 + 43,573.4 + 40,575.6 = 396,269$

Thus, Pranav needs to pay Rs 396,269 at the end of the 2nd year to clear all his dues.

Would you like further details or have any questions?

Relative Questions:

1. How would the repayment change if the interest rate was higher, say 15%?
2. What would be the total interest paid if Pranav repaid the full amount in the first year?
3. How is compound interest different from simple interest in such scenarios?
4. What if Pranav decided to repay more than Rs 23,060 after the first year? How would that affect the remaining balance?
5. How would Pranav’s repayment schedule change if the loan period was extended to 3 years?

Tip: In simple interest calculations, interest is always calculated on the original principal unless a part of the principal is repaid, as in this case.