Multiple choice

A sum of Rs.8360 is borrowed at 20% pa compounded interest and paid back in two equal annual instalments. What is the amount of each instalment? 8360 रुपए की राशि 20% प्रति वर्ष चक्रवृद्धि ब्याज पर उधार ली जाती है और दो समान वार्षिक किश्तों में वापस भुगतान किया जाता है । प्रत्येक किस्त की राशि क्या है?

  1. Rs. 5572

  2. Rs. 5472

  3. Rs. 6652

  4. Rs. 4572

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let each installment = x. After 1 year: amount = 8360 × 1.2 = 10032. After paying x: remaining = 10032 - x. After 2nd year: (10032 - x) × 1.2 = x. Solving: 12038.4 - 1.2x = x, 2.2x = 12038.4, x = 5472. Use the compound interest formula recursively, equating final amount to the second installment.