Ravi was due ₹270000 on retirement. ₹110000 was paid immediately and interest on the balance is charged for six months at nine percent per annum. What is the total amount payable before payment?

Correct answer: ₹167200

The direct answer is B: ₹167200. Begin with the retirement amount of ₹270000. Ravi receives ₹110000 immediately, so the unpaid balance is ₹270000 − ₹110000 = ₹160000. Interest is charged only on this outstanding balance, not on the amount already paid. The annual rate is 9%, but the period is six months, which is one-half of a year. Thus interest is ₹160000 × 9/100 × 6/12 = ₹7200. The amount payable before the final payment is the outstanding principal plus this interest: ₹160000 + ₹7200 = ₹167200. Option A, ₹160000, is only the unpaid principal and leaves out interest. Option B, ₹167200, correctly includes both principal and six-month interest. Option C, ₹174300, does not follow the stated calculation and overstates the amount. Option D, ₹380000, incorrectly adds or treats the figures as though the full original amount and another amount were payable. The key rule is to calculate interest on the unpaid loan for the stated time. Memory cue: first subtract immediate payment, then calculate time-based interest, then add it to the balance.