Multiple choice

sham borrowed a sum of Rs.4500 from bank at compound interest at 20% per annum. He pays back Rs.1500 at the end of each year. Calculate how much amount he will pay at the end of third year to clear all his dues?

  1. Rs.1020

  2. Rs.3816

  3. Rs.3814

  4. Rs.2500

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Year 1: 4500 * 1.2 = 5400, after payment = 3900. Year 2: 3900 * 1.2 = 4680, after payment = 3180. Year 3: 3180 * 1.2 = 3816. Payment at end of year 3 = 3816 to clear dues.

Keep practicing — related questions