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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