Rajan took a loan of Rs.4000 at an annual compound interest rate of 5%. After 2 years, he paid back Rs.2210. He settled the remaining amount along with interest after another 2 years. What is the total interest he paid over the entire period?

Explanation

The total interest paid is calculated by first finding the compound amount after 2 years, subtracting the partial repayment, then compounding the remaining balance for 2 more years. The difference between the total amount paid and the principal Rs.4000 is Rs.635.50.