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    Question

    A borrows Rs 15000 from B at 40% p.a

    compound interest compounded annually. At the end of every year he pays Rs 7500 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. 14513.75 Correct Answer Incorrect Answer
    B Rs. 14080 Correct Answer Incorrect Answer
    C Rs. 15960 Correct Answer Incorrect Answer
    D Rs. 13800 Correct Answer Incorrect Answer
    E Rs. 14224 Correct Answer Incorrect Answer

    Solution

    At the end of the 1st year:
    Amount = 15000 × 140% = Rs. 21000
    Rest amount = 21000 – 7500 = Rs. 13500
    At the end of 2nd year:
    Amount = 13500 × 140% = Rs. 18900
    Rest amount = 18900 – 7500 = Rs. 11400
    At the end of 3rd year:
    Amount = 11400 × 140% = Rs. 15960

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