New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A borrows Rs 5600 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. 4513.75 Correct Answer Incorrect Answer
    B Rs. 3076.8 Correct Answer Incorrect Answer
    C Rs. 5960 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 = 5600 × 120% = Rs. 6720
    Rest amount = 6720 – 2500 = Rs. 4220
    At the end of 2nd year:
    Amount = 4220 × 120% = Rs. 5064
    Rest amount = 5064 – 2500 = Rs. 2564
    At the end of 3rd year:
    Amount = 2564 × 120% = Rs. 3076.8

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