Multiple choice

Darren had to pay a loan of Rs. 56440 in 2 annual instalments where the first payment is half of the second payment. If the interest is calculated annually at the rate of 5% per annum on the balance amount, then what is the first payment?

  1. Rs. 20300

  2. Rs. 20401

  3. Rs. 20554

  4. Rs.20612
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let the first payment be x and the second be 2x. The total amount is 56440. The interest is applied to the balance after the first payment. Solving the equation x + 2x(1 + 0.05)^-1 = 56440 leads to the result.

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