Multiple choice

A person borrowed a sum of Rs 30800 at 10% p.a. for 3 years, interest compounded annually. At the end of two years, he paid a sum of Rs13268. At the end of 3rd year, he paid Rs x to clear of the debt. What is the value of x?

  1. 25500

  2. 26400

  3. 23200

  4. 27000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount after 2 years = 30800 × 1.1^2 = 37268. After paying 13268, remaining principal = 37268 - 13268 = 24000. This grows to 24000 × 1.1 = 26400 after the 3rd year, which is the final payment x.

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