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      Question

      A borrows Rs 6000 from B at 20% p.a

      compound interest compounded annually. At the end of every year he pays Rs 2500 and at the end of 3rd years he pays all the amount, how much amount does he pay at the end of the 3rd year?
      A Rs. 3718 Correct Answer Incorrect Answer
      B Rs. 3440 Correct Answer Incorrect Answer
      C Rs. 3768 Correct Answer Incorrect Answer
      D Rs. 3800 Correct Answer Incorrect Answer
      E Rs. 3350 Correct Answer Incorrect Answer

      Solution

      At the end of the 1st year:
      Amount = 6000 × 120% = Rs. 7200
      Rest amount = 7200 – 2500 = Rs. 4700
      At the end of 2nd year:
      Amount = 4700 × 120% = Rs. 5640
      Rest amount = 5640 – 2500 = Rs. 3140
      At the end of 3rd year:
      Amount = 3140 × 120% = Rs. 3768

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