Multiple choice

A man borrows Rs. 4000 at 8% compound interest for 3 years. At the end of each year he paid Rs. 500. How much amount should he pay at the end of 3rd year to clear the dept?

  1. Rs. 4254.5

  2. Rs. 3465.5

  3. Rs. 3485.2

  4. Rs. 4345.4

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

Calculate compound interest iteratively: Year 1: Rs. 4000 × 1.08 = Rs. 4320, after Rs. 500 payment = Rs. 3820. Year 2: Rs. 3820 × 1.08 = Rs. 4125.60, after payment = Rs. 3625.60. Year 3: Rs. 3625.60 × 1.08 = Rs. 3915.65 final payment. This doesn't match options A-D, so E is correct.

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