Question

    A borrows Rs 5000 from B at 8% p.a

    compound interest compounded annually. At the end of every year he pays Rs 2000 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. 7272 Correct Answer Incorrect Answer
    C Rs. 1805.76 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 × 108% = Rs. 5400
    Rest amount = 5400 – 2000 = Rs. 3400
    At the end of 2nd year:
    Amount = 3400 × 108% = Rs. 3672
    Rest amount = 3672 – 2000 = Rs. 1672
    At the end of 3rd year:
    Amount = 1672 × 108% = Rs. 1805.76

    Practice Next
    More Simple and compound interest Questions
    ask-question