InterviewSolution
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Ram borrow Rs.50,000 at 5% annually compound interest, At the end of each year he pay back Rs.2100, How much amount should he pay at the end of the third year to clear his debit?1. Rs.54,4612. Rs.53,4813. Rs.53,3614. Rs.53,4615. None of these |
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Answer» Correct Answer - Option 3 : Rs.53,361 Given: Ram borrow Rs.50,000 at 5% annually compound interest At the end of each year he pay back Rs.2100 Clear debit in 3 years Concept: Compound interest is interest on interest. A = P × (1 + R/100)T A = Final amount P = Initial amount R = Rate of interest T = Time Calculation: At end of 1 year amount = 50000 × (1 + 5/100) ⇒ 50000 × (105/100) ⇒ Rs.52,500 After payback Rs.2,100 remaining amount for pay at the end of 1 year = 52500 – 2100 ⇒ Rs.50,400 At end of 2 year amount = 50400 × (1 + 5/100) ⇒ 50400 × (105/100) ⇒ Rs.52,920 After payback Rs.2,100 remaining amount for pay at the end of 2 year = 52920 – 2100 ⇒ Rs.50,820 At end of 3 year amount = 50820 × (1 + 5/100) ⇒ 50820 × (105/100) ⇒ Rs.53,361 ∴ Rs.53,361 should he pay at the end of the third year to clear his debit. |
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