Total Dues = Remaining Principal + Interest Calculation: Year 1 interest =(806465×20×1)÷100=161293 After 1 year, he repays ₹25,590 principal. Remaining principal =806465−25590=780875 Year 2 interest =(780875×20×1)÷100=156175 Total interest payable =161293+156175=317468 Total principal pending =780875 ⇒ Final payment at end of 2nd year =780875+317468=1098343