Multiple choice

Sahil borrowed Rs. 19,500 at 20% compound interest for a period of 3 years. He pays Rs. 1500 as instalment at the end of every year. How much money does he still owe after 3 such instalments?

  1. Rs. 28,236

  2. Rs. 31,596

  3. Rs. 27,996

  4. Rs. 42,396

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

Year 1: Amount = 19500 * 1.2 - 1500 = 21900. Year 2: Amount = 21900 * 1.2 - 1500 = 24780 - 1500 = 24780. Year 3: Amount = 24780 * 1.2 - 1500 = 29736 - 1500 = 28236.

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