Multiple choice

A loan is to be returned in two equals yearly installments. If the rate of interest is 10% p.a., compounded annually and each installment is Rs.6534, then the total interest charged (in Rs) is: एक ऋण दो समान वार्षिक किश्तों में वापस किया जाना है। यदि ब्याज की दर 10% प्रति वर्ष है, जो वार्षिक रूप से संयोजित है और प्रत्येक किस्त रु.6534 है, तो लिया गया कुल ब्याज (रु में) है:

  1. 1728

  2. 1867

  3. 1642

  4. 1579

  5. 1800

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

For two equal installments of Rs. 6,534 at 10% compound interest, present value = 6534/(1.1) + 6534/(1.1²) = 5,940 + 5,400 = Rs. 11,340 (loan amount). Total payment = 6,534 × 2 = Rs. 13,068. Interest charged = 13,068 - 11,340 = Rs. 1,728, which matches option A.