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    Question

    A borrows Rs 7500 from B at 14% 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. 4513.75 Correct Answer Incorrect Answer
    B Rs. 7272 Correct Answer Incorrect Answer
    C Rs. 5012.58 Correct Answer Incorrect Answer
    D Rs. 3800 Correct Answer Incorrect Answer
    E Rs. 4224 Correct Answer Incorrect Answer

    Solution

    At the end of the 1st year:
    Amount = 7500 × 114% = Rs. 8550
    Rest amount = 8550 – 2500 = Rs. 6050
    At the end of 2nd year:
    Amount = 6050 × 114% = Rs. 6897
    Rest amount = 6897 – 2500 = Rs. 4397
    At the end of 3rd year:
    Amount = 4397 × 114% = Rs. 5012.58

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