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    Question

    A borrows Rs 5000 from B at 15% p.a

    compound interest compounded annually. At the end of every year he pays Rs 1250 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. 4513.75 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. 4235 Correct Answer Incorrect Answer

    Solution

    At the end of the 1st year:
    Amount = 5000 × 115% = Rs. 5750
    Rest amount = 5750 – 1250 = Rs. 4500
    At the end of 2nd year:
    Amount = 4500 × 115% = Rs. 5175
    Rest amount = 5175 – 1250 = Rs. 3925
    At the end of 3rd year:
    Amount = 3925 × 115% = Rs. 4513.75

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